If a company wants to sell 100 shares to raise $5,000 with Earnings Per Share of $5, what would the share price need to be?
The calculation of share price is as follows:
Share price = amount to be raised/number of shares issued
= $5,000/100 shares
= $50 per share.
Note-
EPS will not be considered in The calculation of share price.
If a company wants to sell 100 shares to raise $5,000 with Earnings Per Share of...
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