What investment capitalization rate did investors appear to


Question - Use income data for investment analysis

During 2012, Resource, Inc., had sales of $7.16 billion, operating profit of $2.70 billion, and net income of $3.70 billion. EPS was $4.50. On June 9, 2013, one share of Resource's common stock was priced at $54.20 on the New York Stock Exchange. What investment capitalization rate did investors appear to be using to determine the value of one share of Resource stock? The formula for the value of one share of stock uses EPS in the calculation.

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Accounting Basics: What investment capitalization rate did investors appear to
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