What is the estimated price per common share for pham

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Reference no: EM132907499

Pham Co. is a private company with 1,550,000 common shares outstanding. It also has 450,000 preferred shares outstanding with an annual dividend rate of $3.75 per share. The dividends on these preferred shares were paid during the year, along with a dividend of $1.35 per share on the common shares. The company recently reported net income of $5,785,600 for the year.

Research has discovered three comparable companies that reported the following:

Comparable 1 - Current share price $145.00; EPS $11.93
Comparable 2 - Current share price $85.00; EPS $7.50
Comparable 3 - Current share price $64.50; EPS $5.66

Problem 1: What is the estimated price per common share for Pham?

a) $15.05
b) $27.70
c) $30.75
d) $32.13

Reference no: EM132907499

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