If a company's stock is trading at $50 per share and its earnings per share are $5, what is the price-earnings (P/E) ratio? A) 5 B) 7 10 D) 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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What is the price earnings ratio?

If a company's stock is trading at $50 per share and its earnings per share are $5, what is the price-earnings
(P/E) ratio?
A) 5
B) 7
10
D) 15
Transcribed Image Text:If a company's stock is trading at $50 per share and its earnings per share are $5, what is the price-earnings (P/E) ratio? A) 5 B) 7 10 D) 15
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