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USING THIS IMAGE, ANSWER THE QUESTION. A stock's price will change due to either a change in the company's EPS and/or a change in the
USING THIS IMAGE, ANSWER THE QUESTION.
A stock's price will change due to either a change in the company's EPS and/or a change in the multiple EPS (the P/E ratio) that investors are willing to pay. Point out a time period in the graph when the stock price changed due to an increase or decrease in the P/E ratio (while the eps was fairly stable) rather than to a change in the earnings per share (while the P/E ratio remained fairly stable).Describe what caused the stock price to change (ie change in EPS or P/E?).
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