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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

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Answer:

The answer is ' a profit of $14 million

Explanation:

Revenue = $24 million

Total expenses = $10 million

Profit(loss) = Revenue minus total expenses

$24 million - $10 million

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It is a profit because revenue is greater than total expenses. Adventure Enterprises will report a loss if reported total expenses was greater than reported revenue

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What is your advertising objective if you want to ensure your content catches the eye of the people who want what you offer?
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Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.
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Fred's Paper Shop frequently buys paper from Online Office Supplies, Inc. Online Office Supplies and Fred's Paper Shop decide to
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likelihood that disputes will arise under their contract is reduced.

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4 years ago
Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help finance that gro
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Answer: $16.69

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Using the Dividend growth model, the value is:

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Terminal value = Dividend after 2 years / (required return - growth)

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3 years ago
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