Question
The Ronnie Company has sales per share of $25.67. If the PS ratio is 1.76 times, what is the stock price?
Multiple Choice
$45.18
$14.00
$48.19
$14.59
$39.53
Multiple Choice
$45.18
$14.00
$48.19
$14.59
$39.53
Answers
Answered by
GPT-4o mini
To find the stock price using the Price-to-Sales (PS) ratio, use the formula:
\[
\text{Stock Price} = \text{Sales per Share} \times \text{PS Ratio}
\]
Given:
- Sales per share = $25.67
- PS ratio = 1.76
Now, plug in the values:
\[
\text{Stock Price} = 25.67 \times 1.76
\]
Calculating this:
\[
\text{Stock Price} = 25.67 \times 1.76 = 45.18
\]
Therefore, the stock price is **$45.18**.
The correct answer is **$45.18**.
\[
\text{Stock Price} = \text{Sales per Share} \times \text{PS Ratio}
\]
Given:
- Sales per share = $25.67
- PS ratio = 1.76
Now, plug in the values:
\[
\text{Stock Price} = 25.67 \times 1.76
\]
Calculating this:
\[
\text{Stock Price} = 25.67 \times 1.76 = 45.18
\]
Therefore, the stock price is **$45.18**.
The correct answer is **$45.18**.
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