Use Table 7. Assume company 1 and company 3 are in the tech sector and company 2 is in the consumer staples sector. Value High Tech based on the comparables approach with this new information.

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.10BE: Common stockholders' profitability analysis A company reports the following: Net income 1,000,000...
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O $36.90
O $52.52
Comparables
$53.32
O $39.00
P/E
P/BV
P/S
High Tech
EPS
BV per share
Sales per share
Company 1
19.70
7.5
2.5
2.00
11.50
15.00
Table 7
Company 2
21.20
7.9
2.1
Use Table 7. Assume company 1 and company 3 are in the tech sector and company 2 is in the
consumer staples sector. Value High Tech based on the comparables approach with this new
information.
Company 3
17.201
6.7
2.7
Transcribed Image Text:O $36.90 O $52.52 Comparables $53.32 O $39.00 P/E P/BV P/S High Tech EPS BV per share Sales per share Company 1 19.70 7.5 2.5 2.00 11.50 15.00 Table 7 Company 2 21.20 7.9 2.1 Use Table 7. Assume company 1 and company 3 are in the tech sector and company 2 is in the consumer staples sector. Value High Tech based on the comparables approach with this new information. Company 3 17.201 6.7 2.7
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