Question
Fairfield Learning is a retailer focused on education supplies.The company has a book value of $28.88 per share. FairfieldLearning has a PB ratio of 6.23
Fairfield Learning is a retailer focused on education supplies.The company has a book value of $28.88 per share. FairfieldLearning has a PB ratio of 6.23 and the education supplies industryPB ratio is 5.31. Assuming that comparable industry companies arepriced correctly the intrinsic value of Fairfield Learning's equityper share is:
Undervalued $26.57 per share
Overvalued $26.57 per share
Priced correctly
Overvalued by $29.17 per share
Fairfield Learning is a retailer focused on education supplies.The company has a book value of $28.88 per share. FairfieldLearning has a PB ratio of 6.23 and the education supplies industryPB ratio is 5.31. Assuming that comparable industry companies arepriced correctly the intrinsic value of Fairfield Learning's equityper share is:
Undervalued $26.57 per share | ||
Overvalued $26.57 per share | ||
Priced correctly | ||
Overvalued by $29.17 per share |
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
