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part b You are deciding whether to invest in Goldmine, Inc, a national mining company. You observe the Price to Earnings ratio of the following
part b You are deciding whether to invest in Goldmine, Inc, a national mining company. You observe the Price to Earnings ratio of the following companies. Company Nucor Copper Mining Gem Razor and Shave Cream Company Forensic Silver Mining Geld Mining Company Lakeland Pharmaceuticals JP Mushing Investments P/E Ratio 23.9 16.9 24.1 24.0 17.1 19.0 Goldmine has earnings of $60 million and has 15 million shares outstanding. It currently trades at $48/share in the market. Respond to the following two questions: a) Should you buy Goldmine and why? b) If the data in the table above remains unchanged over time, what price approximately (to the nearest dollar) do you expect Goldmine eventually to rise or fall to? Needed for credit: All work must be shown. Answers to each question stated in a full sentence
part b
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