Case summary:
Person C and Person GR are the founders and owners of R Company. This company manufactures and installs heating, ventilation, and cooling units (HVAC) commercially. Both the owners have 50,000 shares of the company’s stock as per the partnership deed. They wanted to sell their stocks and decided to value their holdings in the company.
R Company has $3.75 earnings per share and the dividends of $48,000 each were paid to the owners of the company. Moreover, there is even
Characters in the case:
R Company: The firm that wants to value their stocks.
Person C: Co-owner of Company R.
Person GR: Co-owner of Company R.
To determine: The industry average price earnings ratio.
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