What should be the price of malta stock

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Reference no: EM132920762

Problem 1: At year end, Malta Company balance sheet showed total assets of $60 million, total liabilities of $45 million, and 1,300,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $3.5 million. If the average P/E multiple in Malta's industry is 15, (and this is an average stock) what should be the price of Malta's stock?

Group of answer choices

Option 1: $40.38

Option 2: $43.22

Option 3: $25,00

Option 4: $38.50

Reference no: EM132920762

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