Answer? General accounting Last year, Horizon Technologies reported earnings per share of $6.50 when itsstock price was $130.00. This year, its earnings increased by 15 percent. If theP/E ratio remains constant, what is likely to be the price of the stock?

Step 1: Define P/E RatioP/E Ratio (Price-to-Earnings Ratio): This ratio measures the relationship…

Answered: Last year, Horizon Technologies…

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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Last year, Horizon Technologies reported earnings per share of $6.50 when its stock price was $130.00. This year, its earnings increased by 15 percent. If the P/E ratio remains constant, what is likely to be the price of the stock?