Please given answer accounting question In 2014, Pringle Company reported earnings per share of$10.00 when its stock was selling for $240. In 2015, itsearnings increased by 12 percent. If all other relationshipsremain constant, what is the price of the stock?

Step 1:First we need to calculate P/E ratio for 2014 == Market price per share / earning per…

Answered: In 2014, Pringle Company reported…

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

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In 2014, Pringle Company reported earnings per share of $10.00 when its stock was selling for $240. In 2015, its earnings increased by 12 percent. If all other relationships remain constant, what is the price of the stock?