1. p/e ratio = 30 expected market value per share = 5.1 2. p/e ratio = 40...
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Question:
1. p/e ratio = 30
expected market value per share = 5.1
2. p/e ratio = 40
expected market value per share = 6.8
- Actual merket price = 7.8
Compare the actual market price with the expected market value per share and tell the shareprice is over/underpriced for each of the assumption.
Requirement :
Able to do simple analysisto compare the marketprice based on the P/E ratio assumptions and the actual market price.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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