Question: Suppose you own stock in the TechWave Inc., which had earnings of $1.20 per share last year. If yesterday's closing price was $45.60, what is the price-earnings ratio of the stock? A. 42:1 B. 38:1 C. 35:1 D. 40:1

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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Question: Suppose you own stock in the TechWave Inc., which
had earnings of $1.20 per share last year. If yesterday's
closing price was $45.60, what is the price-earnings ratio
of the stock?
A. 42:1 B. 38:1 C. 35:1 D. 40:1
Transcribed Image Text:Question: Suppose you own stock in the TechWave Inc., which had earnings of $1.20 per share last year. If yesterday's closing price was $45.60, what is the price-earnings ratio of the stock? A. 42:1 B. 38:1 C. 35:1 D. 40:1
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