Ask Question
12 June, 05:24

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. 12 June, 05:29
    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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers