Valuation with price/earnings multiples For each of the firms shown in the following table, use the data given to estimate its common stock value employing price/ earnings (P/E) multiples. Assets Liabilities and stockholders equity Cash $ 40,000 Accounts payable $100,000 Marketable securities 60,000 Notes payable 30,000 Accounts receivable 120,000 Accrued wages 30,000 Inventories 160,000 Total current liabilities $160,000 Total current assets $380,000 Long-term debt $180,000 Land and buildings (net) $150,000 Preferred stock $ 80,000 Machinery and equipment 250,000 Common stock (10,000 shares) 260,000 Total fixed assets (net) $400,000 Retained earnings 100,000 Total assets $780,000 Total liabilities and stockholders equity $780,000 Gallinas Industries Balance Sheet December 31 Firm Expected EPS Price/earnings multiple A $3.00 6.2 B 4.50 10.0 C 1.80 12.6 D 2.40 8.9 E 5.10 15.0