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Please show formulas P719 Valuation with price/earnings multiples For each of the firms shown in the following table, use the data given to estimate its
Please show formulas
P719 Valuation with price/earnings multiplesFor each of the firms shown in the following table, use the data given to estimate its common stock value employing price/earnings (P/E) multiples.
Firm | Expected EPS | Price/earnings multiple |
---|---|---|
A | $3.00 | 6.2 |
B | 4.50 | 10.0 |
C | 1.80 | 12.6 |
D | 2.40 | 8.9 |
E | 5.10 | 15.0 |
Problem 7-19 | |||
| |||
Firm | Expected EPS | P/E Multiple | Common Stock Value |
A | $3.00 | 6.2 |
|
B | $4.50 | 10 |
|
C | $1.80 | 12.6 |
|
D | $2.40 | 8.9 |
|
E | $5.10 | 15 |
|
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