The ABC Company has net income of $38,000 for the year with 10,000 shares of stock...
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The ABC Company has net income of $38,000 for the year with 10,000 shares of stock outstanding. The XYZ Company is a similar firm with similar growth opportunities and it has 8,000 shares of stock outstanding with a market price of $18 a share and earnings per share of $1.20. What is the estimated stock price of the ABC Company? (Hint: use the P/E multiple method to estimate the stock price) The ABC Company has net income of $38,000 for the year with 10,000 shares of stock outstanding. The XYZ Company is a similar firm with similar growth opportunities and it has 8,000 shares of stock outstanding with a market price of $18 a share and earnings per share of $1.20. What is the estimated stock price of the ABC Company? (Hint: use the P/E multiple method to estimate the stock price)
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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