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

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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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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