Answered: Favorita Candy’s stock is expected to…

Favorita Candy’s stock is expected to earn $3.50 per share this year. Its P/E ratio is 21. What is the stock price? (Round your answer to 2 decimal places.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 5P

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Favorita Candy’s stock is expected to earn $3.50 per share this year. Its P/E ratio is 21. What is the stock price? (Round your answer to 2 decimal places.)

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Favorita Candy’s stock is expected to earn $4.30 per share this year. Its P/E ratio is 21. What is the stock price?