If a company's stock currently sells in the marketplace for $80 per share, and the book value of this stock is $40 per share, what is the price earnings ratio if the earnings per share is $5.00? a. 16.00 b. 8.00 c. 0.06 d. 0.13

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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Hi expert please give me answer general accounting question

If a company's stock currently sells in the marketplace for $80 per share, and
the book value of this stock is $40 per share, what is the price earnings ratio if
the earnings per share is $5.00?
a. 16.00
b. 8.00
c. 0.06
d. 0.13
Transcribed Image Text:If a company's stock currently sells in the marketplace for $80 per share, and the book value of this stock is $40 per share, what is the price earnings ratio if the earnings per share is $5.00? a. 16.00 b. 8.00 c. 0.06 d. 0.13
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