Last year, Rec Room Sports reported earnings per share of $ 8.50 when its stock price was

Question:

Last year, Rec Room Sports reported earnings per share of $ 8.50 when its stock price was $ 212.50. This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the stock? Explain.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

Question Posted: