Question

The perfect rose co has earning of 1.55 per share. The benchmark pe for the company is 11. What stock price would you consider appropriate?

Answer 1

$17.05

Step-by-step explanation:

The perfect rose corporation has a earnings of $1.55

The benchmark PE ratio is 11

Therefore the stock price can be calculated as follows

= bench mark PE × EPS

= 11 × 1.55

= $17.05

Hence the stock price to be considered appropriate is $17.05