princessheaven2876 princessheaven2876

17-11-2017
Business

contestada

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?

Respuesta :

andriansp andriansp

27-11-2017

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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