Ask Question
25 December, 19:14

Company X was expected to have earnings per share of the results, the company reported earnings per share of $0.52. What happened to the share price when the stock market opened?

+5
Answers (1)
  1. 25 December, 23:14
    0
    There is not enough information given in the question to decide what happened to the share price when the stock market opened.

    Explanation:

    Using P/E ratio, the ratio which is decided by market price per share / earning per share, is one of the quick and simple ways to estimate share price.

    P/E ratio of a stock is usually expected by an investor by deriving the ratio from similar firm (similar risk firm, operating in the same industry, having similar growth prospects ...). Once investor develop their expectation on P/E ratio, share price is determined by: P/E ratio x EPS.

    As there is no information given on P/E ration, there is not enough information given to develop and expectation on what stock price will be given there is only information regarding EPS is available.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Company X was expected to have earnings per share of the results, the company reported earnings per share of $0.52. What happened to the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers