The average price earnings ratio of firms in the hardware, Financial Management

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The average price earnings ratio of firms in the hardware

The average price earnings ratio of firms in the hardware industry is 12. A firm that manufactures hammers had earnings per share last year of $1.75. According to the P/E multiples approach to valuing a share of stock, the price per share for the hammer company should be:

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Financial Management: The average price earnings ratio of firms in the hardware

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Financial Management: The average price earnings ratio of firms in the hardware

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