Calculate the sales volume variance and sales price variance Blossom Petals Inc. has earnings of $2.10 per share.1. If the benchmark P/E ratio for the company is 21, howmuch will you pay for the stock? (Round the answer to 2decimal places.)nIf thJII MW

To find the price of the stock, you can use the Price-to-Earnings (P/E) ratio formula: Price of…

Answered: Blossom Petals Inc. has earnings of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?
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The Blooming Flower Co. has earnings of $1.63 per share. a. If the benchmark PE for the company is 22, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 25, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price b. Stock price
The Sleeping Flower Co. has earnings of $1.66 per share. 1. If the benchmark PE for the company is 23, how much will you pay for the stock? (Do not round intermediate calculations. Round the answer to 2 decimal places.) 2. If the benchmark PE for the company is 26, how much will you pay for the stock? (Do not round intermediate calculations. Round the answer to 2 decimal places.) The market price of one share of stock is $43.00 and the firm's earnings per share of stock is $2.62. Calculate the price-earnings ratio for the firm.

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Blossom Petals Inc. has earnings of $2.10 per share. 1. If the benchmark P/E ratio for the company is 21, how much will you pay for the stock? (Round the answer to 2 decimal places.) n If th JII M W