Curenaig as an ePsu Cormpuny 23 The me eid divkreai are erfe

Curenaig as an ePsu Cormpuny 23. The me eid divkreai are erfertel to grown-49 the current s?ce ecice? b) l12 C)32.83 d) t4S.3 e) LG.66

Solution

Valuation of shares

Earning Per Share = $1.97

P/E Ratio = 23 times

Note- Dividend and growth rates are irrelevant as P/E RATIO is based on current share price only.

SO,

P/E ratio i.e Stock Price/ Earning Per Share = 23

Stock Price = 23* EPS

= 23 * $ 1.97 = $45.31 I.E OPTION NO D.