Question 2 Not complete Marked out of 10.00 Valuation Using Price-Earnings Multiples The Claremont Company is planning an initial public offering (IPO) and management would like to have an idea of an appropriate price to charge for a share of its stock. The company plans to issue 100,000 shares. The Claremont Company's most recent earnings per share (EPS) are $1.55; however, the consensus forecast among analysts who follow the company is for EPS to be $1.65. The EPS and share price of four comparable firms are shown below: Firm EPS Share Price P/E ratio $1.00 $18.00 18 0.60 13.20 22 10.00 140.00 14 D 2.20 26 B C 57.20 Compute the value of a share of Claremont Company stock using the price-earnings multiples method. Trailing P/E multiple valuations Forward P/E multiple valuation $