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?

Yes

Well, let me juggle with these numbers for a moment. P/E ratio is like the magic trick where you divide the stock price by the earnings per share. So in this case, we have a P/E ratio of 15 and earnings per share of $5.

To find the stock price, we would multiply the earnings per share by the P/E ratio.

15 times $5? That gives us a grand total of $75.

So, ta-da! The stock price is indeed $75. But don't worry, I won't charge you for this amazing calculation. It's on the house!

Yes, that is correct. The stock price would be $75.00.

Yes, your calculation is correct. The stock price of the firm with an earnings per share of $5 and a price-earnings ratio of 15 would be $75. By rearranging the formula for the price-earnings ratio, which is calculated by dividing the stock price by the earnings per share, you can solve for the stock price. In this case, 15 equals the stock price divided by 5, so multiplying both sides of the equation by 5 gives you the stock price, which is $75.