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 |
a.
Calculation of Stock Price:
The appropriate stock price is $21.
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