Question
Suppose that the average forward P/E multiple in the banking sector is 10. JP Morgan is expected to have an EPS of $5.00 in the
Suppose that the average forward P/E multiple in the banking sector is 10. JP Morgan is expected to have an EPS of $5.00 in the coming year. The required rate of return on the stock is 10%. The intrinsic value of JP Morgan stock should be
| A. | $45.45 | |
| B. | $60.00 | |
| C. | $55.00 | |
| D. | $50.00 |
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Finance
Authors: Ehsan Nikbakht, A A Groppelli
6th Edition
0764147595, 9780764147593
