TargetCo has earnings per share of $3.90, 1.2 million shares, and a price per share of $38.10. If companies in the same industry as TargetCo are trading at multiples of 16 times earnings, what would be one estimate of an appropriate premium for TargetCo? One estimate of an appropriate premium for TargetCo is%. (Rrounded to one decimal place.)

TargetCo has earnings per share of $3.90, 1.2 million shares, and a price per share of $38.10. If companies in the same industry as TargetCo are trading at multiples of 16 times earnings, what would be one estimate of an appropriate premium for TargetCo? One estimate of an appropriate premium for TargetCo is%. (Rrounded to one decimal place.)

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Description: Need both question. ....don't attempt if you will not solve both questions. ....... TargetCo has earnings per share of $3.90, 1.2 million shares, and a price per share of $38.10. If companies in the same industry as TargetCo are trading at multiples

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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