A company's Price-to-Earnings (P/E) ratio is 15, and itsearnings per share (EPS) is $4. What is the stock price?a) $45b) $60c) $75d) $90

Explanation of P/E Ratio (Price-to-Earnings Ratio):The P/E ratio is a financial metric that measures…

Answered: A company's Price-to-Earnings (P/E)…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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A company in the same industry as Company XYZ has a price-to-earnings (P/E) ratio of 15. If Company XYZ's earnings per share (EPS) is $3, what is the estimated value of Company XYZ's stock based on the P/E multiple? a b C d $20 $30 $45 $50
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If a company's stock is trading at $50 per share and its earnings per share are $5, what is the price-earnings (P/E) ratio? A) 5 B) 7 C) 10 D) 15 Answer: C) 10 Explanation: P/E Ratio = Price per Share / Earnings per Share = $50 / $5 = 10.

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A company's Price-to-Earnings (P/E) ratio is 15, and its earnings per share (EPS) is $4. What is the stock price? a) $45 b) $60 c) $75 d) $90