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emergency!! all the is 9 2. The Red and Black Company's CFO Stendhal wants to value a company for a potential acquisition offer, however this
emergency!!
all the is 9
2. The Red and Black Company's CFO Stendhal wants to value a company for a potential acquisition offer, however this company is not publicly traded. Therefore, he checks the publicly traded competitor companies' P/E and P/B ratios. The P/E and P/B ratios of the competitors are given below: Company P/E P/B XYZ 8.2 1.3 XZY 9.3 1.7 YXZ 10.4 1.5 YZX 11.5 1.3 ZXY 12.6 1.8 ZYX 1x.7 0.x The company's common equity is $x000000 and it has 100000 shares outstanding. Last year's net income is $x00000. a. What is the company's PPS according to P/E ratio of the competitiors? (7.5 pts) b. What is the company's PPS according to P/B ratio of the competitiors? (7.5 pts) Step by Step Solution
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