If a company's stock currently sells in the marketplace for $55 per share, and the book value of this stock is $25 per share, what is the price earnings ratio if the earnings per share is $3.00? a. 18.33 b. 8.33 c. 0.05 d. 0.12

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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If a company's stock currently sells in the marketplace
for $55 per share, and the book value of this stock is
$25 per share, what is the price earnings ratio if the
earnings per share is $3.00?
a. 18.33
b. 8.33
c. 0.05
d. 0.12
Transcribed Image Text:If a company's stock currently sells in the marketplace for $55 per share, and the book value of this stock is $25 per share, what is the price earnings ratio if the earnings per share is $3.00? a. 18.33 b. 8.33 c. 0.05 d. 0.12
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