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The Blooming Flower Co. has earnings of $1.48 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock?
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The Blooming Flower Co. has earnings of $1.48 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock?

User Seertaak
by
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1 Answer

4 votes

Answer:

$22.20

Step-by-step explanation:

Using the equation to calculate the price of a share of stock with the PE ratio:

P = Benchmark PE ratio * EPS

So, with a PE ratio of 15

P = 15*($1.48)

P = $22.20

User HFBrowning
by
5.2k points
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