Coca-Cola has expected earnings per share (EPS) of $1.4. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.93 21.37 What is the value of Coca-Cola's stock based on the lowest P/E ratio? What is the value of Coca-Cola's stock based on the highest P/E ratio? What is the value of Coca-Cola's stock based on the average P/E ratio?

Coca-Cola has expected earnings per share (EPS) of $1.4. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.93 21.37 What is the value of Coca-Cola's stock based on the lowest P/E ratio? What is the value of Coca-Cola's stock based on the highest P/E ratio? What is the value of Coca-Cola's stock based on the average P/E ratio?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter14: Valuation: Market-based Approach

Section: Chapter Questions

Problem 1KIC

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	Dr Pepper	Nestle	Pepsico
P/E ratio	22.07	23.93	21.37

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