Last year, Orange Inc. reported earnings per share of $20 and a $5 per share dividend. If that company's stock is currently trading at $160, what is its P/E ratio?

Question

Quizplus · Accepted Answer

The P/E (Price to Earnings) ratio is calculated by dividing the current market price of the stock by its earnings per share (EPS). In this case, the stock is trading at $160 and the EPS is $20. Therefore, the P/E ratio is $160 / $20 = 8.0.

Last Year, Orange Inc