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Question 1. Problem 9 (Berk (2018), Chapter 10) You notice that Cisco Computer Systems has a share price of $30.72 and earnings per share of $0.52. Its competitor Hewlett-Packard has earnings per share of $0.36. What is one estimate of the value of Hewlett-Packard shares? What implicit assumptions do we make when valuing a firm using P/E ratios of comparable companies?

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