If the p/e ratio of a company's common stock were 12, and its earnings were $2.50 per common share: a. the market value of the common stock would be $20.83 per share. b. the market value of the common stock would be $25.00 per sharec. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share. d. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $1.67 per share.

C. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share.

Explanation:

The P/E ratio (also sometimes called "the multiple") is simply the current price per share divided by the earnings per share. (Price / Earnings = P/E) If you multiply both sides of that equation by Earnings, you get Price = P/E * Earnings.

So if you have P/E = 12 and Earnings = $2.50/share, the price would be 12 * 2.50/share = $30/share. That means a) and b) are both wrong.

It also means that 12 times the change in earnings will tell you the change in price (if the P/E multiple doesn't change). So a 0.20 rise in earnings will raise the stock price by 12 times that amount or $2.40/share. So c) is the correct answer.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answer; read and consider the content of the items;