The projected earnings per share for Risky Ventures, Inc., is $3.50. The average PE ratio for the
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The projected earnings per share for Risky Ventures, Inc., is $3.50. The average PE ratio for the industry composed of Risky Ventures’ closest competitors is 21. After careful analysis, you decide that Risky Ventures is a little more risky than average, so you decide a PE ratio of 23 better reflects the market’s perception of the firm. Estimate the current price of
the firm’s stock.
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Related Book For
Financial Markets and Institutions
ISBN: 978-0133423624
8th edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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