A company has a stock price of $72 per share and earnings per share of $3.60. What is the company's price/earnings ratio? a. 10 b. 20 c. 25 d. 30

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
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Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Please provide the answer to this general accounting question using the right approach.

A company has a stock price of $72 per share and earnings per share
of $3.60. What is the company's price/earnings ratio?
a. 10
b. 20
c. 25
d. 30
Transcribed Image Text:A company has a stock price of $72 per share and earnings per share of $3.60. What is the company's price/earnings ratio? a. 10 b. 20 c. 25 d. 30
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