The company has a price - earnings ratio of 15 times and earnings per share were $3. What is the market value of each share of stock? Multiple choice question. a)$15 b)$3 c)$5 d)$45
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
The company has a price - earnings ratio of 15 times and earnings per share were $3. What is the market value of each share of stock? Multiple choice question. a)$15 b)$3 c)$5 d)$45
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