You are valuing one share of a bank using valuation by comparables. You selected four similar banks,

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You are valuing one share of a bank using valuation by comparables. You selected four similar banks, calculated their PE ratios and reported them in the table below. What is the value of one share of your bank if the bank generates $5.0 of earnings per share? (Enter your answer in dollars with 2 decimal places.)

Bank	P/E Ratio
Wells Fargo	95.6
Citigroup	15.4
Bank of America	20.8
JP Morgan Chase	17.2

Related Book For answer-question

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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Posted Date: Apr 04, 2024 04:09 AM

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You are valuing one share of a bank using valuation by comparables. You selected four similar banks,

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Valuation by comparables uses the PE ratio to infer the fair value of a company based on t... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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