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Aldean Corporation has shares of stock trading at $61.26 today. The company has 1.00 million shares...

Aldean Corporation has shares of stock trading at $61.26 today. The company has 1.00 million shares outstanding. Earnings for the company last year were $7.00 million. Construct a P/E multiple for the company.

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Answer #1

Earnings per share=$7 million/1 million share=$7/share

PE multiple=Market price/Earnings per share

=61.26/7

=8.75(Approx).

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