What should the price per share be theoretically
Problem: Mag Corporation has a earnings per share of 2.30 and it is trading at 22.50 per share. Base on the PE ratio of the S & P Index of 25, what should the price per share be theoretically? Please show formula, and how it is computed?
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Mag Corporation has a earnings per share of 2.30 and it is trading at 22.50 per share. Base on the PE ratio of the S & P Index of 25, what should the price per share be theoretically? Please show formula, and how it is computed?
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