1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry_Shevchenko [17]
3 years ago
12

You are trying to value the common stock shares BeGood Company using a market multiples approach. Begone just reported annual ea

rnings of $1.74 per share. BeGood is a privately held corporation and has three main publicly traded competitors. Below, the most recent price/earnings multiples are presented for each competitor: Competitor P/E Multiple
BeSafe 11.20
Y-Not 13.25
R-U-Sure 14.88
Based on this information, determine the share price of BeGood. Use the market multiple approach and compute to the second decimal place
Business
1 answer:
lakkis [162]3 years ago
7 0

Answer:

$22.81

Explanation:

We can easily calculate share price for BeeGood company just by multiplying the current earnings per share with an average P/E ration of competitors

P/E = Price earning ratio

EPS = Earning per share

Formula: Share price = PE x EPS

Share price = \frac{(11.2+13.25+14.88)}{3} x $1.74

Share price = $22.81

You might be interested in
Give two characteristics of a perfectly competitive market.
sergey [27]
1. a large number of buyers and sellers
2. an identical or a homogeneous product
7 0
3 years ago
Customers are likely to be more price sensitive when
Murljashka [212]
They dont see the end benefit

Not 100% on this one
4 0
3 years ago
Gains or losses on cash flow hedges are Group of answer choices ignored completely. recorded in equity, as part of other compreh
Helga [31]

Answer: The correct answer is "recorded in equity recorded in equity, as part of other comprehensive income.".

Explanation: Gains or losses on cash flow hedges are <u>recorded in equity, as part of other comprehensive income.</u>

<u>The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.</u>

7 0
3 years ago
Bonita Corporation had net sales of $2,409,200 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of goods
____ [38]

Answer:

net income: $ 451,010

EPS:             $           6.32 per share

Explanation:

net sales                   2,409,200

cost of good sold     (1,464,600)

gross profit:                  944,600

operating expenses:

selling expenses         (284,000)

operating income         660,600

non operating:

interest revenue              38,100

interest expense           (54,400)

non operating expense (16,300)

earning before taxes:     644,300

tax expense:  30%          193,260

net income                      451,010

shares outstanding          71,390

Earning per share: 451,010/71,390 = 6,31755

4 0
3 years ago
When noticing a suspicious vehicle on your property?
Ymorist [56]
<span>I'd call the non-emergency police number and ask them to drive by and see what was up when they had a free minute</span>
5 0
3 years ago
Other questions:
  • California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the compa
    5·1 answer
  • Creative Crew is a direct-marketing company that sells merchandise such as T-shirts, customized coffee mugs, calendars, key chai
    15·2 answers
  • What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?
    7·1 answer
  • What are the period and vertical shift of the cosecant function below? period: ; vertical shift: 1 unit up period: ; vertical sh
    15·2 answers
  • Before you could train as a physician, you first had to become _____.
    11·2 answers
  • A tragic flaw in a character is cause by
    12·1 answer
  • How do i know im not gay
    9·2 answers
  • PLEASE HELP ME ILL MAKE YOU BRAINLIEST
    9·2 answers
  • The top management of a beverage manufacturing company has put together a team to handle the marketing of its new health drink.
    8·1 answer
  • INTERVIEW a business owner on the crisis experienced in the workplace attach an interview schedule as part of your oral presenta
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!