Question: Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. Ithaca Beer's estimated earnings per share for the coming year (also called

Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. Ithaca Beer's estimated earnings per share for the coming year (also called target EPS) is $3.25 and the median forward P/E of comparable firms is 15.00. Estimate the value of common stock using the P/E ratio.

Group of answer choices

A. $52.25

B. $78.65

C. $48.65

D. $48.75

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