Question

The common stock of Alpha closed at $2.00 per share today, down $ 0.30 from yesterday....

  1. The common stock of Alpha closed at $2.00 per share today, down $ 0.30 from yesterday. If the company has 4 million share outstanding and annual earnings of $ 12 million, what is its P/E today ? What was its P/E yesterday ?

Homework Answers

Answer #1

Solution :

The P/E today is = 0.67

The P/E yesterday is = 0.77

As per the information given in the question Price per share of alpha today = $ 2.00

This price is down $ 0.30 since yesterday

Thus Price per share of alpha today = $ 2.00 + $ 0.30 = $ 2.30

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.

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