Use the table for the question(s) below.
Consider the following income statement and other information:

-Luther's price - earnings ratio (P/E)for the year ending December 31,2006 is closest to:
A) 7.9
B) 10.1
C) 15.4
D) 16.0

Question

Use the table for the question(s) below.
Consider the following income statement and other information:
 
-Luther's price - earnings ratio (P/E)for the year ending December 31,2006 is closest to:
A) 7.9 
B) 10.1 
C) 15.4 
D) 16.0

Quizplus · Accepted Answer

C) P/E = Price / EPS or Market Cap / Earnings = (10.2 × $16) / $10.6 = 15.4

Use the Table for the Question(s) Below