Question
In: Finance
8. You are deciding whether to invest in Goldmine, Inc, a national mining company. You observe...
8. You are deciding whether to invest in Goldmine, Inc, a national mining company. You observe the Price to Earnings ratio of the following companies.
|
Company |
P/E Ratio |
|
Nucor Copper Mining |
23.9 |
|
Gem Razor and Shave Cream Company |
16.9 |
|
Forensic Silver Mining |
24.1 |
|
Geld Mining Company |
24.0 |
|
Lavoris Household Goods |
17.1 |
|
JP Mushing Investments |
19.0 |
Goldmine has earnings of $90 million and has 15 million shares outstanding. It currently trades at $114/share in the market. Respond to two questions:
- Should you buy Goldmine and why?
- If the data in the table above remains unchanged over time, what price approximately (to the nearest dollar) do you expect Goldmine eventually to rise or fall to?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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MULTIPLE IRRS AND MIRR A mining company is deciding whether to open a strip mine, which...
MULTIPLE IRRS AND MIRR
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