Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. let's dream venture is trying to price the value o

Let's Dream venture is trying to price the value of its equity; however, there is...

90.2K

Verified Solution

Question

Finance

image

Let's Dream venture is trying to price the value of its equity; however, there is no historical performance, therefore the founder decides to use P/E ratio to find the equity price. Sky venture has been in the same business for a few years. Their stock is priced at $400 apiece and their net income is $200,000. They have 50,000 shares. What should be the stock price for the Let's Dream if their expected earnings per share is $2.5 ? $350. $50. $100. $250. $400. $150

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Lamarck, in part, based his erroneous theory of evolution on the passing of acquired characteristics from...

Finance
1.2K views

71. What information must a corporation put in a registration statement? 72. Dillingham (a resident of Washington)is...

General Management
1.2K views

Question 2 Define Maslow’s Hierarchy of Needs and explain how consumers respond to the 5 levels within...

General Management
1.2K views

Watch the video "Advertising, Sales Promotion, and Public Relations." Discuss the strengths and weaknesses of each...

Physics
1.2K views

2 0 cm An 20 Two charges q 3 0 C and q2 4 0...

Statistics
1.2K views

Suppose that two attributes w and u both measures of net funness have been recorded...

Accounting
1.2K views

Sundown Chiefs FC has recently implemented a major maintenance project to prepare its grounds for...

Accounting
1.2K views

3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $...

Accounting
1.2K views

When we manufacture and sell 10,000 units of our product, our net income is $16,000,...

Accounting
1.2K views

The number of units in the April 1 inventory is: The equivalent units...

Finance
1.2K views

Solve a,b,c 3. (Portfolio VaR) Suppose there are two investments A and B. Either...

Accounting
1.2K views

33. Please write a positive confirmation memo on behalf of a client named Archie Corporation...