Nova Components is a manufacturer of computer parts. The company recently reported earnings of $2,417,762. In addition, Nova Components has 402,500 shares issued and outstanding. The company has a PE ratio of 24.6. Nova Components is part of the computer parts industry which has an industry PE ratio of 25.6. Using industry information, estimate the intrinsic value of Nova Components' equity per share. A. $64.08 B. $153.78 C. $128.15 D. $5.01

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
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Nova Components is a manufacturer of computer parts. The company recently reported earnings
of $2,417,762. In addition, Nova Components has 402,500 shares issued and outstanding. The
company has a PE ratio of 24.6. Nova Components is part of the computer parts industry which
has an industry PE ratio of 25.6.
Using industry information, estimate the intrinsic value of Nova Components' equity per share.
A. $64.08
B. $153.78
C. $128.15
D. $5.01
Transcribed Image Text:Nova Components is a manufacturer of computer parts. The company recently reported earnings of $2,417,762. In addition, Nova Components has 402,500 shares issued and outstanding. The company has a PE ratio of 24.6. Nova Components is part of the computer parts industry which has an industry PE ratio of 25.6. Using industry information, estimate the intrinsic value of Nova Components' equity per share. A. $64.08 B. $153.78 C. $128.15 D. $5.01
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