Question
The current price of Hope Corporation stock is $35 per share. Tomorrow the company will announce that next year's earnings are expected to be $2
The current price of Hope Corporation stock is $35 per share. Tomorrow the company will announce that next year's earnings are expected to be $2 per share. The expected P/E multiple is 30 times. What price would you expect for Hope stock after the earnings news?
A) 20.50
B) 10.00
C) 40.00
D) 60.00
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
