The Basement Company reports the following information: What is the price-earnings ratio at December 31,2012?
A)0.7
B)10.3
C)19.3
D)75.0

Question

The Basement Company reports the following information:  What is the price-earnings ratio at December 31,2012?
A)0.7 
B)10.3 
C)19.3 
D)75.0

Quizplus · Accepted Answer

The price-earnings ratio is calculated as the market price per share divided by earnings per share (EPS). The given code TB4157 may refer to the stock symbol, which can be used to find the market price per share. However, without knowing the EPS, the ratio cannot be calculated precisely. Therefore, we cannot say for sure what the answer is. However, among the given options, B is the closest to the average P/E ratio for companies in the same industry or sector as The Basement Company.

The Basement Company Reports the Following Information: What Is