In 2009, Big W Company reported earnings per share of ($ 2.50) when its stock was selling

Question:

In 2009, Big W Company reported earnings per share of $\$ 2.50$ when its stock was selling for $\$ 50.00$. If its 2010 earnings increase by 10 percent and the $\mathrm{P} / \mathrm{E}$ ratio remains constant, what will be the price of its stock? Explain.

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