Business, 21.12.2019 03:31 janaemartinez42

If the p/e ratio of a company's common stock were 12, and its earnings were $2.50 per common share: a. the market value of the common stock would be $20.83 per share. b. the market value of the common stock would be $25.00 per sharec. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share. d. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $1.67 per share.

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If the p/e ratio of a company's common stock were 12, and its earnings were $2.50 per common share:...