Question2

An analyst is trying to estimate Johnson & Johnson's equity (intrinsic) value per share based on the peers' average PE ratio. The peers' average PE ratio is 22.50. The analyst also has collected the following financial information about Johnson & Johnson.

Net income is $11,053 million. Common shares outstanding is 2,893 million. Book value of equity is $39,318 million. What is Johnson & Johnson's equity (intrinsic) value per share based on the peers' average PE ratio?

248,692.5

85.96

884,655

305.79