Interest is compounded annually unless stated otherwise. Payments are at the end of the year unless...

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Interest is compounded annually unless stated otherwise. Payments are at the end of the year unless...

Interest is compounded annually unless stated otherwise. Payments are at the end of the year unless stated otherwise. All bonds have a face value of $1000.

4. Goofy Gadgets makes toys. Their EPS is $4.00 per share. Estimate the share price using the price-earnings ratio (P-E) for a comparable firm, Hasbro, of 20.9.

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Answer 1

Answer #1

Price = P/E*EPS = 20.9*4=83.6

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