Favorita candy's stock is expected to earn $4.00 per share this year. its p/e ratio is 18%. what price is the stock price? (round your answer to 2 decimal places.

The price-earnings ratio (P/E ratio) is the measure of a company’s current stock price in relation to its per stock earnings. In the sample given, P/E Ratio of Favorita candy's stock is 18% and is expected to earn $4.00 per share this year. The price of the stock is calculated as follows:

Market Value per Stock / Earnings per Stock = P/E ratio

Let X the price value of stock in $

Earnings per stock = $4

P/E Ratio = 18%

X/4 = 18

X = 18X 4

X = 72