Financial Accounting Problem 5.2 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.

To compute: Price Earnings Ratio = Price per share / Earnings per share Price Earnings Ratio = $50 /…

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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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.