Question

The perfect rose co. has earnings of $1.70 per share. the benchmark pe for the company is 20. what stock price would you consider appropriate?

Answer 1

The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the company is 20.

What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Stock price = Earning per Share * PE Ratio

Stock price = 1.70*20

Stock price = $ 34

What if the benchmark PE were 23? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price = Earning per Share * PE Ratio

Stock price = 1.70*23

Stock price = $ 39.10