The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10.     a.What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.What if the benchmark PE were 13? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)stock price for pe of 10stock price for pe of 13

Question
Asked Oct 2, 2019

The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10.

  

 

 

 

a.

What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.

What if the benchmark PE were 13? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

stock price for pe of 10

stock price for pe of 13

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Step 1

a.

Calculation of Stock Price:

The appropriate stock price is $21.

...
Stock Price [EPS x PE Ratio
[$2.10x10
= $21
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Stock Price [EPS x PE Ratio [$2.10x10 = $21

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