A firm has earnings per share (EPS) of $4 and a price-to- earnings (P/E) ratio of 18. What is the firm's stock market price? a. $22.00 b. $64.00 c. $72.00 d. $18.00

Cornerstones of Financial Accounting
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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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A firm has earnings per share (EPS) of $4 and a price-to-
earnings (P/E) ratio of 18.
What is the firm's stock market price?
a. $22.00
b. $64.00
c. $72.00
d. $18.00
Transcribed Image Text:A firm has earnings per share (EPS) of $4 and a price-to- earnings (P/E) ratio of 18. What is the firm's stock market price? a. $22.00 b. $64.00 c. $72.00 d. $18.00
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