Use the following table to answer the following questions.
Table 8-2

-Refer to Table 8-2. For which company's stock is the P/E ratio closest to what is historically typical?
A) Boeing Co.
B) Eli Lilly and Co.
C) H. J. Heinz and Co.
D) Kellog Co.

Question

Use the following table to answer the following questions.
Table 8-2
 
-Refer to Table 8-2. For which company's stock is the P/E ratio closest to what is historically typical?
A) Boeing Co. 
B) Eli Lilly and Co. 
C) H. J. Heinz and Co. 
D) Kellog Co.

Quizplus · Accepted Answer

To determine which company's P/E ratio is closest to what is historically typical, we need to compare the current P/E ratios to their historical averages. For H. J. Heinz and Co., the current P/E ratio of 19.1 is closest to its historical average of 18.4. The other companies all have current P/E ratios that are significantly higher or lower than their historical averages.

Use the Following Table to Answer the Following Questions