# Question: The average P E ratio for the industry that Health Science

The average P/E ratio for the industry that Health Science, Inc. is in is currently 24. If the company has a P/E ratio 20 percent higher than the industry ratio of 24 in 2012 and 25 percent higher than the industry ratio (also of 24) in 2013:

a. Indicate the appropriate P/E ratios for the firm in 2012 and 2013.

b. Combine this with the earnings per share data in problem 17 to determine the anticipated stock price for 2012 and 2013. Round to two places.

a. Indicate the appropriate P/E ratios for the firm in 2012 and 2013.

b. Combine this with the earnings per share data in problem 17 to determine the anticipated stock price for 2012 and 2013. Round to two places.

## Answer to relevant Questions

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