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SRD Corporations stock is currently selling at $36 per share. SRD reported total revenues of $5.26 billion over the past year, has a book value
SRD Corporations stock is currently selling at $36 per share. SRD reported total revenues
of $5.26 billion over the past year, has a book value of equity of $2.9 billion, and has 296
million shares outstanding. Based on comparable firms, the appropriate P/S and P/B for
SRD are 2.85 and 4.75, respectively.
A. What is the stocks approximate intrinsic value based on the P/S multiplier?
B. What is the stocks approximate intrinsic value based on the P/B multiplier?
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