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Stone West Mining Corp. has 10,000 shares outstanding with a market price per share of $24. The net after-tax earnings of the firm are $60,000.
Stone West Mining Corp. has 10,000 shares outstanding with a market price per share of $24. The net after-tax earnings of the firm are $60,000. Stone West marketing department forecasts an abnormal growth over the next few years; hence the firm has just declared a 5-for-2 stock split. What will the price-earnings ratio be after the stock split?
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