If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share?
A) $3.08
B) $2.27
C) $7.00
D) $1.12

Question

Quizplus · Accepted Answer

The PE ratio is the price per share divided by the earnings per share, so the earnings per share can be calculated as price per share / PE ratio. Using this formula, we get $2.27 as the current earnings per share for Comdisco.

If the Common Stock of Comdisco Pays an Annual Dividend