Hello tutor please provide this question solution general accounting 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?

Step 1: The price of the stock can be calculated by multiplying the P/E Ratio and the EPS for this…

Answered: Last year, Rec Room Sports reported…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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?