Sankey Co has earnings per share of 445 The benchmark PE Is

Sankey Co. has earnings per share of $4.45. The benchmark PE Is 19.8 times. What stock price would you consider appropriate? O $24.25 O $42.71 O $4449 O $66.30 O $88.1

Solution

Answer: Option $88.11

Explanation: PE ratio =price /eps

$19.8=price/$4.45

Price =19.8*4.45

Price = 88.11$

Therefore stock price = $88.11

Thanks....