Question:
If the earnings per share of a company is $3.85 and the earnings yield is 2.5%, what is the price per sharE
Posted By Admin @ September 03, 2022
If the earnings per share of a company is $3.85 and the earnings yield is 2.5%, what is the price per sharE
The price per share is $154
Earning yield = earnings/price
The parameters given in the question
earnings per share= 3.85
earnings yield= 2.5 × 100
= 0.025
3.85= 0.025/price
cross multiply
price= 3.85/0.025
= 154
= $154
Hence the price is $154
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