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Use the following to answer questions 24-25. Use the following information to answer the next two questions. Suppose Minion Childcare Service, has earnings per share

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Use the following to answer questions 24-25. Use the following information to answer the next two questions. Suppose Minion Childcare Service, has earnings per share of dollar 1.38. The average P/E of the home daycare services industry is 21.3. The average P/E ratio for child safety equipment is 27. Estimate a value for Minion Childcare Services stock using the correct P/E as a valuation multiple. dollar 29.39 dollar 15.43 dollar 21.38 dollar 37.26 What are the assumptions underlying the estimate found using the P/E valuation multiple. Minions Childcare Services will have similar future risk as other firms in the childcare industry. Minions Childcare Services will have different future risk as other firms in the childcare industry. Minions Childcare Services will have similar future risk as other firms in child-safety related industries. Minions Childcare Services will have similar growth rates as other firms in child-safety related industries. All of the above

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