Consider Company RV that has projected earnings per share of $2.5 and a projected book value per

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Consider Company RV that has projected earnings per share of $2.5 and a projected book value per share of $20. Determine the estimated value of this Company RV, based on a relative value using the price-earnings ratio and the market value to book value ratio.

Use the average of the respective multiples of the following three comparables companies:

Comparable Value per Share $15 $32 $60 XXN Y Earnings per Share $1 $2 $5 Book Value per Share $10 $8 $40

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The Theory And Practice Of Investment Management

ISBN: 9780470929902

2nd Edition

Authors: Frank J Fabozzi, Harry M Markowitz

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Question Posted: Dec 19, 2023 01:35 AM

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Consider Company RV that has projected earnings per share of $2.5 and a projected book value per

Question:

Comparable Value per Share $15 $32 $60 XXN Y Earnings per Share $1 $2 $5 Book Value per Share $10 $8 $40

Step by Step Answer:

calculate the PE ratio and MB ratio for each comparable PE ratio Value per Share Earnings per Share ...View the full answer

The Theory And Practice Of Investment Management

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