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Author Question: In the price/earnings approach to stock valuation, (Read 59 times)

connormoss

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on: Mar 29, 2022

Question 1

Hallowell Inc. has free cash flow of $2.5 million and 1.25 million shares outstanding.  If you believe the price to cash flow ratio for this company should be 11, what is the highest price you should pay for the stock?
◦ $13.75
◦ $22.00
◦ $22.72
◦ $27.50

Question 2

In the price/earnings approach to stock valuation,
◦ historical stock prices are utilized.
◦ forecasted EPS are typically used.
◦ the P/E ratio is computed by multiplying the stock price by the earnings per share.
◦ the market P/E ratio, adjusted by beta, is used to value individual stocks.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by connormoss on Mar 29, 2022

miro2222

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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connormoss

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Reply 2 on: Mar 29, 2022
:D TYSM

laurnthompson

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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