The current stock price of Bay James Tourism Company is $25.Current earnings per share are $15 and are expected to grow by 20% next year.Bay James Tourism's trailing and forward price-earnings ratios are:
A)Trailing = 1.67; Forward = 1.39
B)Trailing = 1.67; Forward = 1.20
C)Trailing = 1.39; Forward = 1.67
D)Trailing = 1.20; Forward = 1.67

Question

Quizplus · Accepted Answer

Trailing P/E = Current Stock Price / Current EPS = $25 / $15 = 1.67Forward P/E = Current Stock Price / Expected EPS = $25 / ($15 * 1.20) = 1.39

The Current Stock Price of Bay James Tourism Company Is