There is $22,000 in earning available to common stockholder and the stock has a P/E of 18. What would be the steps to find out what the current price of the stock be?
reinsuranc
Mar 30, 2005, 12:20 PM
Are you sure you are not leaving something out?
Price/Earnings = 18
Price = 18 X Earnings
Price = 18 X 22000 = 396000.
These numbers are not the magnitude I would expect, but I have used all the data you supplied.