Answered: A company has a stock price of $64 per…

A company has a stock price of $64 per share, earnings per share (EPS) of $1.60, and dividends per share of $0.45. What is the company's price/earnings (P/E) ratio?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 37CE: Stockholder Profitability Ratios The following information pertains to Montague Corporation...

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Question

Can you explain the process for solving this financial accounting question accurately?

A company has a stock price of $64 per share, earnings per
share (EPS) of $1.60, and dividends per share of $0.45.
What is the company's price/earnings (P/E) ratio?

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