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A firm with earnings per share of $3 and a price-earnings (P/E) ratio of 24 will have a stock market price of Group of answer choices $72.00. $15.00. $6.67. $3.00.

Respuesta :

Answer:

$72

Explanation:

Given that,

Earnings per share = $3

Price-earnings (P/E) ratio = 24

Therefore, the stock market price is determined by multiplying the price-earning ratio with the earnings per share.

Stock market price:

= Price-earnings (P/E) ratio × Earnings per share

= 24 × $3

= $72

Hence, the firm will have a stock market price of $72.

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