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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
Valuation with price/earnings multiplesFor 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.(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Firm | Expected EPS | Price/earnings multiple |
|
A | $3.003.00 | 6.26.2 | |
B | 4.504.50 | 10.010.0 | |
C | 1.801.80 | 12.612.6 | |
D | 2.402.40 | 8.98.9 | |
E | 5.105.10 | 15.015.0 |
The value of firm A's common stock is
$nothing.
(Round to the nearest cent.)
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