If a company's stock is currently selling for $12 per share and its price earning ratio is 6, what are its earnings per share? What does this figure mean?

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 is currently selling for $12 per share and its price earning ratio is 6, what are its earnings per share? What does this figure mean?

 

 

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