Suppose you own stock in Ace Sportswear Inc., which had earnings of $1.25 per share last year. If yesterday's closing price was $45.50, what is the price-earnings ratio of the stock? a) 36:4 b) 33:4 c) 38:4 d) 22:4
Suppose you own stock in Ace Sportswear Inc., which had earnings of $1.25 per share last year. If yesterday's closing price was $45.50, what is the price-earnings ratio of the stock? a) 36:4 b) 33:4 c) 38:4 d) 22:4
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
Problem 2MAD
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Question
What is the price earnings ratio of the stock on these financial accounting question?

Transcribed Image Text:Suppose you own stock in Ace Sportswear Inc., which had earnings of
$1.25 per share last year. If yesterday's closing price was $45.50, what
is the price-earnings ratio of the stock?
a) 36:4
b) 33:4
c) 38:4
d) 22:4
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