Stone West mining Corp. has 12,000 shares outstanding with a market price per share of...
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Accounting
Stone West mining Corp. has 12,000 shares outstanding with a market price per share of $60. The net after-tax earnings of the firm are $45,000. Stone West E&R department management forecasts an abnormal growth over the next few years; hence the firm has just declared a 3-for-1 stock split. What will the price-earnings ratio be after the stock split?
12.50
16.00
5.33
8.00
14.33
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