Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vick Resources has a P/E ratio of 15, a P/S ratio of 5, and a P/B ratio of 2.5. Vicks earnings per share are 2.15,

Vick Resources has a P/E ratio of 15, a P/S ratio of 5, and a P/B ratio of 2.5. Vicks earnings per share are 2.15, its sales per share are 8.00, and its book value per share is $16. An analyst will estimate the value per share with each multiplier, and then use a weighted average of these estimates where the P/E estimator is weighted 0.5, the P/S estimator is weighted 0.3, and the P/B estimator is weighted 0.2. What is the final estimated price per share for Vick?

A.

$40.75

B.

$42.25

C.

$37.42

D.

$36.12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Waste An Actual Gold And Silver Mine

Authors: Antonio Alcivar

1st Edition

979-8367641059

More Books

Students also viewed these Finance questions

Question

An attibute is lnow As a table relation roe field file

Answered: 1 week ago