Song Corp's stock price at the end of last year was $23.50 and its earnings per share for the year were $1.30.What was its P/E ratio?
A)17.17
B)18.08
C)18.98
D)19.93
E)20.93

Name: Song Corp's stock price at the end of last year was $23.50 and its earnings per share for the year were $1.30.What was its P/E ratio? A)17.17 B)18.08 C)18.98 D)19.93 E)20.93
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Question

Quizplus · Accepted Answer

P/E ratio = Stock price / Earnings per share
Thus, P/E ratio = 23.50 / 1.30 = 18.08. Therefore, the best choice is B.

Song Corp's Stock Price at the End of Last Year