P/E of stock A is 12.0, P/E of stock B is 10.0. The stock A is listed and the price per share is 100 USD. The stock B is not currently traded but the Company B is applying for listing at the New York Stock Exchange. You are the underwriter of this transaction and have to identify the fair value of stock B. Use the P/E of stock A to identify the fair value of stock B.
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Answer:
Find the compound interest and the amount to be paid on Rs. 10,000 borrowed for 2 years at the rate of 8% per annum compunded annually
2)Calculate the compound interest on Rs.800 for 3 years at 5% p.a. compounded annually
Explanation:
P/E of stock A is 12.0, P/E of stock B is 10.0. The stock A is listed and the price per share is 100 USD. The stock B is not currently traded but the Company B is applying for listing at the New York Stock Exchange. You are the underwriter of this transaction and have to identify the fair value of stock B. Use the P/E of stock A to identify the fair value of stock B.
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Answer:
83.33
Explanation:
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