The P/E ratio of a stock is 20,and its earnings per share is $5.25.What is the current selling price of the stock?

Name: The P/E ratio of a stock is 20,and its earnings per share is $5.25.What is the current selling price of the stock?
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Question

Quizplus · Accepted Answer

P/E ratio = Price per share / Earnings per share
20 = Price per share / 5.25
Price per share = 20 * 5.25
Price per share = $105
Therefore, the current selling price of the stock is $105, which is answer choice D.

The P/E Ratio of a Stock Is 20,and Its Earnings