Compute Topp Companys price- earnings ratio if its common stock has a market value of $ 20.54

Question:

Compute Topp Company’s price- earnings ratio if its common stock has a market value of $ 20.54 per share and its EPS is $ 3.95. Would an analyst likely consider this stock potentially overpriced- or underpriced or neither? Explain.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...