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30 March, 20:55

Favorita candy's stock is expected to earn $2.40 per share this year. its p/e ratio is 18. what is the stock price?

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  1. 30 March, 21:50
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    The formula to calculate p/e ratio is: price/earnings.

    So, the price of the stock would be

    p/e ratio = price/earnings

    18 = price / 2.4

    Price = 2.4 x 18

    Price = 43.2
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