In 2012, Rec Room Sports reported earnings per share of $8.50 when its stock price was $212.50.

Question:

In 2012, Rec Room Sports reported earnings per share of $8.50 when its stock price was $212.50. In 2013, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the stock? Explain.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Fundamentals of Financial Accounting

ISBN: 978-0078025372

4th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

Question Posted: