The Wildcat Corporation recently announced that its year end estimated earnings per share next year will be $3.25. Wildcat stock is currently selling for $43 per share. 

a. What is the P/E ratio for the Wildcat Corporation?
b. Assume prospects for the Wildcat Corporation deteriorate  and the company now estimates next year’s earnings to be $2 per share. If the P/E ratio remains the same, what would be the new selling price for Wildcat stock? 

c. Since it is so simple to calculate, analysts at Trident Investments Ltd. use only the P/E ratio to determine the value of a stock. Is this an appropriate strategy? Explain.