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

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
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Financial Accounting Problem 5.8

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
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 C) 10 D) 15
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