### Computing the firms share price with the help of price

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Computing the firms share price with the help of price earnings ratio.

Perez Electronics Corp. has reported that its net income for 2006 is \$1,276,351. The firm has 420,000 shares outstanding and a P-E ratio of 11.2 times. What is the firm\'s share price?

a) \$34.05

b) \$3.68

c) \$11.20

d) \$36.80

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