For calendar 2020, Budapest Corp. reported net income of $ 29,280 and earnings per share of $ 2.46. There were 12,000 common shares outstanding during 2020. On Dec 31, 2020, the market price for Budapest's common shares was $ 32. To the nearest whole number, what is Budapest's price earnings ratio at Dec 31, 2020?
A) 13
B) 32
C) 375
D) 915

Question

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share (EPS). Given the market price of $32 and EPS of $2.46, the price-earnings ratio is $32 / $2.46 = 13 (to the nearest whole number).

For Calendar 2020, Budapest Corp