Last year,rec room sports reported earnings per share this question solution Last year, Rec Room Sports reported earnings pershare of $8.00 when its stock price was $160.00. Thisyear, its earnings increased by 20 percent. If the P/Eratio remains constant, what is likely to be the priceof the stock?

Detailed Explanation:The P/E ratio essentially reflects how much investors are willing to pay for…

Answered: Last year, Rec Room Sports 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

Section: Chapter Questions

Problem 2MAD

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Last year, Rec Room Sports reported earnings per share of $8.00 when its stock price was $160.00. This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the stock?