In: Finance
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: