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MTB Surfboards Has a P/E of 20

question 34

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MTB Surfboards has a P/E of 20.The discount rate for this firm is 30 percent.They had earnings of $2,000,000 and 100,000 shares of common stock outstanding.What should be the current price of the stock?

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Definitions:

Constitutional

Relating to the established laws and principles of a governmental constitution that define the nature and structure of political and civil institutions and govern the legality of governmental actions.

Laws

Formal rules and regulations, established by legislative bodies or by custom, which govern behavior and are enforceable by penalties.

Rules

Established guidelines or principles governing conduct or procedure within a particular area or activity.

Constitutional Democracy

A Constitutional Democracy is a form of government in which the powers of the majority are limited by a constitution that protects the rights and freedoms of individuals and minority groups.

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