Homework Answers
Earning per share = net income/number of shares outstanding
2000000/640000
3.125 per share
Now, PE ratio = market price per share/earning per share
33/3.125
10.56
Earning per share one year from now= 2500000/736000
= 3.39674
Market price one year from now =PE ratio * EPs
10.56 *3.39674
35.87 per share
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