Question
In: Finance
On a particular date, a company has a stock price of $24.17 and an EPS of...
On
a particular date, a company has a stock price of $24.17 and an EPS
of $ 2.89. Its competitor had a stock price of $20.57. What would
be the expected EPS of their competitor's stock on this date, if
estimated using the method of comparables?
A. 1.36
B. 4.77
C. 3.60
D. 2.46
Solutions
Expert Solution
PE ratio = 24.17/2.89 = $8.36
EPS of competitors stock = 20.57/8.36
EPS = $2.46
So,
Earning per Share = $2.46
jeff jeffy answered 2 years agoRelated Solutions
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