One share of Caracal Enterprises has a par value of $50, while its market value is $120. The earnings per share (EPS) for Caracal Enterprises is $15. What would be the P/E ratio?

Name: One share of Caracal Enterprises has a par value of $50, while its market value is $120. The earnings per share (EPS) for Caracal Enterprises is $15. What would be the P/E ratio?
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Question

Quizplus · Accepted Answer

The P/E ratio of the company is 8.
To find the P/E ratio, divide the market value by the EPS. In this case, $120$15 = 8.

One Share of Caracal Enterprises Has a Par Value of $50