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Price-earnings ratio be after the stock split

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Reference no: EM131739340

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?

A.) 14.33

B.) 8.00

C.) 16.00

D.) 5.33

E.) 12.50

Reference no: EM131739340

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