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?
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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?
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.
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