Question
If the P/E ratio of a company's common stock were 12, and its earnings were $2.50 per common share: A. the market value of the
If the P/E ratio of a company's common stock were 12, and its earnings were $2.50 per common share:
| A. | the market value of the common stock would be $20.83 per share. | |
| B. | the market value of the common stock would be $25.00 per share | |
| C. | an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share. | |
| D. | an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $1.67 per share. |
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Payroll Management 2020 Edition
Authors: Steven M. Bragg
1642210366, 978-1642210361
