If a company's stock is trading at $50 per share and its earnings pershare are $5, what is the price-earnings (P/E) ratio?A) 5B) 7C) 10D) 15Answer: C) 10Explanation: P/E Ratio = Price per Share / Earnings per Share = $50 /$5 = 10.

The price-earnings (P/E) ratio is a financial metric that compares a company's stock price to its…

Answered: If a company's stock is trading at $50…

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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A company's Price-to-Earnings (P/E) ratio is 15, and its earnings per share (EPS) is $4. What is the stock price? a) $45 b) $60 c) $75 d) $90
Question: Suppose the EPS of Wal-Mart stock was $2 and the current price per earnings ratio is 10. What is the current price of Wal-Mart stock? The price/earnings ratio (P/E) is calculated as A) stock price divided by earnings per share B) stock price times earnings per share C) earnings per share divided by stock price D) stock price divided by the difference between earnings per share and cash dividends per share What may be the problem with comparing the P/E of stock to the P/E of the overall market?
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A company in the same industry as Company XYZ has a price-to-earnings (P/E) ratio of 15. If Company XYZ's earnings per share (EPS) is $3, what is the estimated value of Company XYZ's stock based on the P/E multiple? a b C d $20 $30 $45 $50
A company's stock is trading at $50 per share with a price-to-earnings (P/E) ratio of 20. What is the company's earnings per share (EPS)? a) $1.50 b) $2.00 c) $2.50 d) $3.00
You are given the following information: Stockholders? equity = GHS1,250; price/earnings ratio = 5; shares outstanding = 25; and %3D market/book ratio = 1.5. %3D Calculate the market price of a share of the company?s stock. O A. GHS 33.33 B. GHS 75.00 C. GHS 10.00 D. GHS166.67 O E. GHS133.32
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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.