DC Technologies earns a profit of $8 per share. If the prevailing interest rate is 10%, and the stock is currently selling for $96 per share, what is the current price/earnings (P/E) ratio? A. 5 B. 10 C. 12 D. 24

DC Technologies earns a profit of $8 per share. If the prevailing interest rate is 10%, and the stock is currently selling for $96 per share, what is the current price/earnings (P/E) ratio? A. 5 B. 10 C. 12 D. 24

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 13P: The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public...

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Question

What is the current price earnings ratio on these financial accounting question ?

DC Technologies earns a profit of $8 per share. If the
prevailing interest rate is 10%, and the stock is currently
selling for $96 per share, what is the current
price/earnings (P/E) ratio?
A. 5
B. 10
C. 12
D. 24

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