Question
You believe that the appropriate P/E ratio is 15. Find the value for each of the stocks below and indicate if you would buy
You believe that the appropriate P/E ratio is 15. Find the value for each of the stocks below and indicate if you would buy the stock at the current market price. Revenue Expenses Net Income EPS Market Price Value: Buy? Revenue Expenses Net Income EPS Market Price Value Stock A $10M $8M $2M $1.50 $24.00 Buy? 2. You believe the appropriate P/E ratio is 12. Find the value for each of the stocks below and indicate if you would buy the stock at the current market price. Stock A Stock B Stock C $2M $1M SIM $10.00 $65.00 $5M $3M Stock B $6M $2M $4M $2M $4.50 $80.00 $2.00 $35.00 Stock C $8M $5M $3M $1.25 $25.00 $4M $3M $1M $5.00 $52.00
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
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