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The Sleeping Flower Co. has earnings of $1.56 per share. If the benchmark PE for

ID: 2661157 • Letter: T

Question

The Sleeping Flower Co. has earnings of $1.56 per share.


If the benchmark PE for the company is 19, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)



If the benchmark PE for the company is 22, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)


Requirement 1:

If the benchmark PE for the company is 19, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

The Sleeping Flower Co. has earnings of $1.56 per share.


If the benchmark PE for the company is 19, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current stock price = earnings per share* PE Ratio

Current stock price = 1.56*19

Current stock price = 29.64

Answer:



If the benchmark PE for the company is 22, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)


Current stock price = earnings per share* PE Ratio

Current stock price = 1.56*22

Current stock price = 34.32

Answer:


Requirement 1:

If the benchmark PE for the company is 19, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current stock price = earnings per share* PE Ratio

Current stock price = 1.56*19

Current stock price = 29.64

Answer:

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