The Price-Earnings valuation model estimates the price of a share of s
The Price-Earnings valuation model estimates the price of a share of stock today as the:
A) sum of a forward looking P/E multiple and the EPS in the next period.
B) product of the firm’s historic P/E multiple and the EPS in the next period.
C) product of a forward looking P/E multiple and the EPS in the next period.
D) product of a forward looking P/E multiple and the current EPS.
ANSWER
C
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