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You are trying to value the stock of B&E Corp. B&E is a privately held company so its shares are not publicly traded. You know,
You are trying to value the stock of B&E Corp. B&E is a privately held company so its shares are not publicly traded. You know, however, that the company will have earning per share of $3.25 at the end of the year. In addition, you know that B&E is similar to several publicly traded firms and you have compiled information on these firms in the table below. Using the average price to earnings ratio (P/E ratio) of these comparable firms, what is the best estimate of B&E's share price? Select one. Firm Share EPS1 Price $ 67.00 $ 3.00 II $ 14.47 $ 0.60 $ 64.39 $ 2.80 IV $ 37.12 $ 1.50 V $ 39.05 $ 1.80 OI. $72.58 OIL $7.13 III. $44.41 O IV. $75.33
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