A company had a market price of $27.50 per share,earnings per share of $1.25,and dividends per share of $0.40.Its price-earnings ratio equals:
A)3.1.
B)22.0.
C)93.8.
D)32.0.
E)3.3.

Question

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share. 
Price-earnings ratio = Market price per share / Earnings per share
= $27.50 / $1.25 
= 22.0 
Therefore, the answer is B.

A Company Had a Market Price of $27