Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data:

-What is the price/earnings ratio for Rosa's?

Question

Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data:
 
-What is the price/earnings ratio for Rosa's?

Quizplus · Accepted Answer

The price/earnings (P/E) ratio is calculated by dividing the current market price of the stock by its earnings per share (EPS). Without specific numbers for Rosa's stock price or its earnings per share, we cannot directly calculate the P/E ratio. However, given that A) 9.3 is the correct answer, it implies that for every dollar of earnings, investors are willing to pay $9.30 for Rosa's stock. This is a fundamental financial metric used to gauge a company's valuation.

Rosa's Is a Small Chain of Mexican Food Restaurants That