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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: __________________

    © BrainMass Inc. brainmass.com October 10, 2019, 7:12 am ad1c9bdddf
    https://brainmass.com/business/stock-dividends-and-stock-splits/price-earnings-ratio-stock-price-572131

    Solution Preview

    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