The current market price of Fixit Ltd's ordinary shares is $5.00 each. If the latest earnings per share is $0.50, the company's price-earnings ratio is:
A)10 times.
B)2.0 times.
C)2.5 times.
D)20 times.

Question

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share (EPS). Here, it's $5.00 / $0.50 = 10 times.

The Current Market Price of Fixit Ltd's Ordinary Shares Is