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The Price-Earnings Ratio Is Calculated by Dividing

Question 85
Multiple Choice

The price-earnings ratio is calculated by dividing: A) Market value per share by earnings per share. B) Earnings per share by market value per share. C) Dividends per share by earnings per share. D) Dividends per share by market value per share. E) Market value per share by dividends per share.

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Q 86
A company has earnings per share net income of $900,000; its weighted-average ordinary shares outstanding are 180,000. Its dividend per share is $0.45, its market price per share is $88, and its book value per share is $76. Its price-earnings ratio equals: A) 9.0. B) 17.6. C) 12.5. D) 15.2. E) 16.9.
Q 87
A company has earnings per share of $9.60. Its dividend per share is $0.50, its market price per share is $120, and its book value per share is $96. Its price-earnings ratio equals: A) 9.6. B) 19.2. C) 12.5. D) 10.0. E) 8.5.
Q 88
A company has a market value per share of $73.00. Its net income is $1,750,000 and the weighted-average number of shares outstanding is 350,000. The company's price-earnings ratio equals: A) 20.9. B) 4.2. C) 14.6. D) 20.0. E) 6.8.
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