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 C) 10 D) 15 Answer: C) 10 Explanation: P/E Ratio = Price per Share / Earnings per Share = $50 / $5 = 10.

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 C) 10 D) 15 Answer: C) 10 Explanation: P/E Ratio = Price per Share / Earnings per Share = $50 / $5 = 10.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 4P: Reno Revolvere has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of...

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Question

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
C) 10
D) 15
Answer: C) 10
Explanation: P/E Ratio = Price per Share / Earnings per Share = $50 /
$5 = 10.

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