If the average market price of Silver Bling Ltd's shares is $3.50 and earnings per ordinary share are 70c the P/E ratio is:
A) 0.2.
B) 0.5.
C) 5.0.
D) 2.0.

Name: If the average market price of Silver Bling Ltd's shares is $3.50 and earnings per ordinary share are 70c the P/E ratio is: A) 0.2. B) 0.5. C) 5.0. D) 2.0.
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Question

Quizplus · Accepted Answer

P/E ratio is calculated by dividing the market price per share by earnings per share. So, P/E ratio = 3.5/0.7 = 5.0. Therefore, the answer is C.

If the Average Market Price of Silver Bling Ltd's Shares