Analysts are projecting that Halyk Bank will have earnings per share of 3.55. If the average industry PE ratio is about 22.2, what is the current price of Halyk Bank?

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A: Ratios are very important in valuation of company and the stock and comparing the companies.

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A: The question is based on the concept of Stock valuation

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A: P/E ratio of Company: P/E ratio=Share priceEPS=$25$1.71=14.62

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A: To calculate the stock price we will use the following formula   Price = Earning per share*PE Ratio…

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A: The required rate of return can be calculated with the help of CAPM equation.

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