Problem

Price-Earnings Ratio The price-earnings ratio P/E of a company is the ratio of the market...

Price-Earnings Ratio The price-earnings ratio P/E of a company is the ratio of the market value of one share of the company’s outstanding common stock to the earnings per share. If P/E increases by 15% and the earnings per share decrease by 10%, determine the percentage change in the market value per share of the common stock.

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Solutions For Problems in Chapter 1.1