If a company's stock currently sells in the marketplace for $55 per share, and the book value of this stock is $25 per share, what is the Price Earnings ratio if the Earnings per Share is $3.00?
A) 0.12
B) 0.05
C) 8.33
D) 18.33

Question

Quizplus · Accepted Answer

The Price Earnings (P/E) ratio is calculated by dividing the market price per share by the earnings per share (EPS). Here, it's $55 / $3.00 = 18.33.

If a Company's Stock Currently Sells in the Marketplace for $55