What is the price/earnings ratio for the current year?
A) 2.07
B) 1.50
C) 0.50
D) 2.0

Name: What is the price/earnings ratio for the current year? A) 2.07 B) 1.50 C) 0.50 D) 2.0
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Question

Quizplus · Accepted Answer

The price/earnings ratio can be calculated by dividing the current stock price by the earnings per share. Using the given information, we can calculate the earnings per share as $2.50 / 1.25 = $2. Then, the price/earnings ratio is $5 / $2 = 2.0. Therefore, the answer is D.

What Is the Price/earnings Ratio for the Current Year