emmagchin35191 emmagchin35191

25-10-2022
Business

Answered

last year, big w company reported earnings per share of $2.50 when its stock was selling for $50.00. if its earnings this year increase by 10 percent and the p/e ratio remains constant, what will be the price of its stock? (do not round intermediate calculations. round your final answer to the nearest whole dollar amount.)

Answer :

SakshTiwari353 SakshTiwari353

28-10-2022

Previous Year: P/E Ratio = Market Price per Share ÷ Earnings per Share = $50.00 ÷ $2.50 = 20

Briefing:-

Current Year: P/E Ratio = Market Price per Share ÷ Earnings per Share 20 = Market Price per Share ÷ ($2.50 × 1.1) 20 × $2.75 = Market Price per Share $55 = Market Price per Share.

What are assessment year and prior year?

The year after the financial year, known as the assessment year, is when the previous year's income is assessed, tax is due on it, and ITRs are filed. For instance, the fiscal year 2020–21 is recognized as the period covering the period from 1 April 2020 to 31 March 2021.

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