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finance (stock price)

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A firm with earning per share of $5 and a price-earnings ration of 15 will have a stock price of?

P/E ratio = stock price / earnis per share

15 = X / 5

X = 15(5)

x = 75

FINAL ANSWER stock price is $75.00

Is this correct?

  • finance (stock price) -

    Yes

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