What is the value of the firm shares of stock

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Problem 1: Machi has a net income of Php5,000,000 and cumulative preferred dividends of Php2,000,000 annually that doesn't been paid for 2 years, including the current year, and outstanding common stock of Php100,000. If the industry has P/E multiplier of 2.5, what is the value of the firm's shares of stock?

a. Php100 per share

b. Php125 per share

c. Php25 per share

d. Php225 per share

Reference no: EM132809372

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