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If a common share A with $5 par value is traded on the market at a price of $10 and the earnings per that share
If a common share A with $5 par value is traded on the market at a price of $10 and the earnings per that share for the last year is $4. While a common share B with $2 par value is traded on the market at a price of $6 with earnings per share at $2. The average PE ratio of the sector of stock A is 4 and for Stock B is 5. 1) Calculate the Price/Earnings ratio for: Stock A: Stock B: 2) Calculate the fair market price of: Stock A: Stock B
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