Shares of Lorne and Greene Manufacturing now sell for $64. If the company had earnings per share of $3.70 last year, calculate the price-earnings ratio of the stock. (Round to nearest whole number)

Question

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the current share price by the earnings per share. So, $64 / $3.70 = 17.3, which rounds to 17:1.

Shares of Lorne and Greene Manufacturing Now Sell for $64