Question

The Dahlia Flower Company has earnings of $3.64 per share. if the benchmark PE for the company is 21, how much will you pay for the stock?

Answer 1

Explanation:

To calculate the stock price, you can multiply the earnings per share (EPS) by the benchmark PE ratio.

The stock price would be:

$3.64 x 21 = $76.44

So you would pay $76.44 per share for the stock of The Dahlia Flower Company.