Answered: A technology company earns a profit of…

A technology company earns a profit of $8 per share. If the stock is currently selling for $96 per share, what is the current price/earnings (P/E) ratio? a) 6 b) 10 c) 12 d) 18

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 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Question

Find correct answer please accounting question

A technology company earns a
profit of $8 per share. If the stock
is currently selling for $96 per
share, what is the current
price/earnings (P/E) ratio?
a) 6
b) 10
c) 12
d) 18

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