Company A is using Companies C and D, which have P/E x of 6x and 8x respectively,

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Company A is using Companies C and D, which have P/E x of 6x and 8x respectively, as its comparable firms. Company A has NPAT of $10m and has 500,000 shares outstanding. Compute the estimated equity value per share of Company A

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Mechanics of Materials

ISBN: 978-0134319650

10th edition

Authors: Russell C. Hibbeler

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Posted Date: May 30, 2023 06:42 AM

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Company A is using Companies C and D, which have P/E x of 6x and 8x respectively,

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To compute the estimated equity value per share of Company A we can use the pricetoearnings PE ratio ... View the full answer

Mechanics of Materials

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