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sdas [7]
3 years ago
10

Favorita candy's stock is expected to earn $2.70 per share this year. It's P/E ratio is 21. What price is the stock price?

Mathematics
1 answer:
Minchanka [31]3 years ago
3 0

Answer:

$56.7

Step-by-step explanation:

Given

Earning per share=E=$2.70

P/E  Ratio=21

The formula for P/E ratio is :

P/E  Ratio=Price/Earning

Where Price is the price of share in stock and earning the amount earned on one share.

Putting the values of Earning and P/E ratio in the formula

21=Price/2.70

21*2.70=Price

Price=$56.7

So the stock price is $56.7..

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