10) A trading firm has P/E of 20. This firm is used as a comparable to price an IPO firm with earnings per shareof $2.0 and a book value per share of $5.5. Neither firm pays dividends. Estimate a value for the share of theIPO firm using P/E as a valuation model. a) $50 I b) $110 C) $40 d) None of the above… Show more Accounting Business Financial Accounting BX 2031 Share QuestionEmailCopy link Comments (0)