If earnings per share is 30c and the market price of each share is $6, the price-earnings ratio is:
A)20:1.
B)10:1.
C)5:1.
D)25:1.

Name: If earnings per share is 30c and the market price of each share is $6, the price-earnings ratio is: A)20:1. B)10:1. C)5:1. D)25:1.
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Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share. In this case, $6 / 30c = 20, so the price-earnings ratio is 20:1.

If Earnings Per Share Is 30c and the Market Price