Smith Inc. has announced net earnings of $877,500 for this year. The company has 325,660 shares outstanding, and the year-end stock price is $50.48. What are the company’s earnings per share and P/E ratio?   a. EPS: $2.69; P/E: 18.77 times b. EPS: $0.37; P/E: 18.77 times c. EPS: $0.37; P/E: 10.55 times d. EPS: $2.69; P/E: 10.55 times

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Smith Inc. has announced net earnings of $877,500 for this year. The company has 325,660 shares outstanding, and the year-end stock price is $50.48. What are the company’s earnings per share and P/E ratio?

 

a. EPS: $2.69; P/E: 18.77 times

b. EPS: $0.37; P/E: 18.77 times

c. EPS: $0.37; P/E: 10.55 times

d. EPS: $2.69; P/E: 10.55 times

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