Question

The Rose Co. has earnings of $1.40 per share. The benchmark PE for the company is 15. What stock price would you consider appropriate

Answer 1

$21

Step-by-step explanation:

The earning per share of Rose Co. is $1.40

The benchmark PE of the organization is 15

We are required to find which stock price would be most appropriate

Therefore, the stock price can be calculated as follows

Stock price= Benchmark PE×Earning per share

= $1.40×15

= $21

Hence the stock price that would be considered appropriate is $21