Question
Suppose that Soul Foods (SF) has earnings per share of $3.7. You believe that Louisiana Foods(LF) is comparable to SF in terms of its underlying
Suppose that Soul Foods (SF) has earnings per share of $3.7. You believe that Louisiana Foods(LF) is comparable to SF in terms of its underlying business. LF has a P/E ratio of 6.5.
Based upon the price earnings multiple, the value of a share of SF is closest to:
$34.63
$19.10
$24.05
$28.03
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
