Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Using the p/e multiples approach solve this question

Using the P/E multiples approach to
valuation, what is the estimated price of a
stock if the firm's P/E ratio is 18.2 and its
earnings are $452,000? Assume that there
are 100,000 shares of stock outstanding.
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Transcribed Image Text:Using the P/E multiples approach to valuation, what is the estimated price of a stock if the firm's P/E ratio is 18.2 and its earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.
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