Common stock value employing price-earnings multiples

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Valuation with price/earnings multiples For each of the firms shown in the following table, use the data given to estimate its common stock value employing price/ earnings (P/E) multiples.

Firm                    Expected EPS                Price/earnings multiple

A                            $3.00                                     6.2

B                              4.50                                    10.0

C                             1.80                                     12.6

D                                2.40                                   8.9

E                             5.10                                     15.0

Reference no: EM131346311

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