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XYZ Widget Company has an historical Price to earnings ratio (PE) of 25. Last year, the company's stock price was $48 per share. Yesterday, the company reported annual earnings of $2.25 per share. As such, the current stock price would be expected to change to $_____ per share.

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This solution explains the computation of current stock price. Ratio analysis and financial statement analysis are provided.

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XYZ Widget Company has an historical Price to earnings ratio (PE) of 25. Last year, the company's stock price was $48 per share. Yesterday, the company reported annual earnings of $2.25 per share. As such, the current stock price would be expected to change to $_____ per ...

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