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L&R’s stock is currently valued at $32.70 a share. The firm had earnings per share of $1.88 last year and projects earnings of $2.10 a share for next year. What is the forward price-earnings ratio?
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L&R’s stock is currently valued at $32.70 a share. The firm had earnings per share of $1.88 last year and projects earnings of $2.10 a share for next year. What is the forward price-earnings ratio?

User Karren
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1 Answer

4 votes

Answer:

$15.57

Step-by-step explanation:

Given that

Earned share = $1.88

Project earning = $2.10

The computation of the forward price-earnings ratio is shown below:-

Forward Price earning ratio = Price ÷ Forward Earning per share

= $32.70 ÷ $2.10

= $15.57

Therefore, to calculate the forward price-earnings ratio we simply divide the price with Forward Earning per share.

User Art Swri
by
5.3k points
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