The price-earnings ratio for the prior year was:
A) 11.1 to 1.
B) 12.2 to 1.
C) 14.3 to 1.
D) 15.8 to 1.

Question

Quizplus · Accepted Answer

The question states that the company's current earnings per share are $3.50 and the current market price per share is $50. This means the current price-earnings ratio is 50/3.5, which simplifies to 14.3 to 1. The answer choices are listed in order from lowest to highest, and since 14.3 to 1 is higher than the three lower choices, the best answer is choice C.

The Price-Earnings Ratio for the Prior Year Was