Suppose you own stock in National Advertising which had earnings of $2.50 per share last year. If yesterday's closing price was $41.50, what is the price-earnings ratio of the stock? A. 6:1 B. 1:17 C. 17:1 D. 4:1

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
Problem 2MAD
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Suppose you own stock in National Advertising which
had earnings of $2.50 per share last year. If yesterday's
closing price was $41.50, what is the price-earnings
ratio of the stock?
A. 6:1
B. 1:17
C. 17:1
D. 4:1
Transcribed Image Text:Suppose you own stock in National Advertising which had earnings of $2.50 per share last year. If yesterday's closing price was $41.50, what is the price-earnings ratio of the stock? A. 6:1 B. 1:17 C. 17:1 D. 4:1
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