If a share of stock in Skylight Chili Ltd. sells for $75, the retained earnings per share are $5, and the divided per share is $2, then the price/earnings ratio is 15.

Question

Quizplus · Accepted Answer

The price/earnings (P/E) ratio is calculated by dividing the market value per share by the earnings per share (EPS). The given information does not provide the earnings per share directly, and the P/E ratio calculation does not involve retained earnings or dividends per share in its formula.

If a Share of Stock in Skylight Chili Ltd