The Sleeping Flower Co has earnings of 173 per share If the

The Sleeping Flower Co. has earnings of $1.73 per share.

If the benchmark PE for the company is 13, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
Current stock price            $

If the benchmark PE for the company is 20, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
Current stock price            $

Solution

Earnings per share (EPS) = $1.73

1) benchmark PE , p1 = 13

current stock price = p1*EPS = 13*1.73 = $22.49

2) if

benchmark PE , p1 = 20

current stock price = p1*EPS = 20*1.73 = $34.60