The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the company is 20.
What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*20
Stock price = $ 34
What if the benchmark PE were 23? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*23
Stock price = $ 39.10
