If a company's stock currently sells in the marketplace for $70 per share, and the book value of this stock is $30 per share, what is the price-to-earnings (P/E) ratio if the earnings per share (EPS) is $4.50? a. 15.56 b. 5.67 c. 0.064 d. 0.15
If a company's stock currently sells in the marketplace for $70 per share, and the book value of this stock is $30 per share, what is the price-to-earnings (P/E) ratio if the earnings per share (EPS) is $4.50? a. 15.56 b. 5.67 c. 0.064 d. 0.15
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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Transcribed Image Text:If a company's stock currently sells in the marketplace for $70
per share, and the book value of this stock is $30 per share,
what is the price-to-earnings (P/E) ratio if the earnings per
share (EPS) is $4.50?
a. 15.56
b. 5.67
c. 0.064
d. 0.15
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