Ask Question
7 May, 13:06

Same company as in RA 5.3: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's Forward P/E ratio, rounded to one decimal place

+5
Answers (1)
  1. 7 May, 15:47
    0
    P/E ratio = $14.78

    Explanation:

    Market value per share = $42

    earning per share = $ 2.84

    As we know that:

    Price earning ratio = market value per share / earning per share

    = $42 / 2.84

    = $14.78

    Price earning ratio is an indicator to investor whether to invest in this company long term or not.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Same company as in RA 5.3: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers