Use the figure for the question(s)below.
-On a particular date,the above information concerning Office Depot,Incorporated,was given on Google Finance.Its competitor,Staples Incorporated,had a stock price of $24.72.Which of the following is closest to the EPS of Staples Incorporated if it is estimated using valuation multiples based on price-earnings ratios?

Question

Use the figure for the question(s)below. 
-On a particular date,the above information concerning Office Depot,Incorporated,was given on Google Finance.Its competitor,Staples Incorporated,had a stock price of $24.72.Which of the following is closest to the EPS of Staples Incorporated if it is estimated using valuation multiples based on price-earnings ratios?

Quizplus · Accepted Answer

The EPS of Staples Incorporated can be estimated by multiplying its stock price by the inverse of the price-earnings ratio of Office Depot. The price-earnings ratio of Office Depot is 10.04, so the EPS of Staples Incorporated is estimated to be $24.72 / 10.04 = $2.67.

Use the Figure for the Question(s)below