Question
Maximize Inc. has expected earnings per share of $2.4. The three closest competitors of Mazimiza have forward P/E ratios of 16.9, 39.3, and 24. Based
Maximize Inc. has expected earnings per share of $2.4. The three closest competitors of Mazimiza have forward P/E ratios of 16.9, 39.3, and 24. Based on relative valuation, what should be the price of Maximize (NOTE: Use average values of ratios)?
a. $65.34
b. $67.36
c. $62.82
d. $64.16
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
