The closing share price is quoted at 22.87,with a P/E of 26 and a net change of 1.42.Based on this information,which one of the following statements is correct? A)The closing price on the previous day was €1.42 higher than today's closing price. B)A dealer will buy the share at €22.87 and sell it at €26. C)The share price increased in value between yesterday's close and today's close by €.0142. D)The earnings per share are equal to 1/26^th of €22.87. E)The earnings per share have increased by €1.42 this year.

Question

Quizplus · Accepted Answer

The P/E ratio is calculated as the share price divided by the earnings per share (EPS). Therefore, EPS is equal to the share price divided by the P/E ratio, which is 22.87/26.

The Closing Share Price Is Quoted at 22