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Price to Earnings Ratio and Stock Price

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ABC has a net profit margin of 4.30% on Sales of $12,000,000. The firm has 250,000 shares outstanding. If the firm's P/E is 16x, how much is the stock selling for? 

Net Profit Margin: 4.30%
Sales: $12,000,000.00
Shares Outstanding : 250,000
P/E: 16.0 x
Earning Per Share: ________________
Market Price: __________________

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Solution:

Net Profit Margin: 4.30%
Sales: $12,000,000.00
Shares Outstanding: 250,000
P/E: 16.0 x
Earning Per ...

Solution Summary

This solution helps in estimating stock price using step-by-step calculations and presenting all formulas used.

$2.19