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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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