If the P/E ratio is 6.5 the share price of the company can be determined if the earnings per share or the total earnings and the total number of shares of a company.
Share price is the price quoted in the market for the exchange of 1 share of the company. Company have a large number of ordinary shares, which is circulated in the stock market where the shares are purchased by individuals.
If the Earnings per share ratio is available the share price can be determined as the P/E ratio is Price over Earnings ratio.
Share Price is divided by the Earnings per share to calculate the P/E ratio which is 6.5 in the given question.
The price should be considered as x and the earnings per share to be multiplied by the P/E ratio that is 6.5.
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