Find average pe ratio of timco competitors

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-Your boss is very pleased with your work - and asks for your help in getting the values of some shares he is considering purchasing as investments for the company. TimCo Inc. shares are trading for $500. Analysts expect the company to generate a net income of $41.7 billion. TimCo has 900 million shares outstanding. The average P/E ratio of TimCo's competitors is 18. What is the fair price for a share of TimCo?

-"All equity markets are efficient," Sarah said. "I disagree," said Chloe. "Large cap markets are efficient - but small-cap markets are not," she continued. Olivia went further. "What about developing country markets. I think these are not efficient." What do you think? Is Sarah, Chloe or Olivia right? Or, are none of them right? Take a position and support it.

Reference no: EM133069981

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