At December 31, 2019, Van Devender's price-earnings ratio was 13.4. For 2019, Van Devender's net income was $660,000, its earnings per share was $7.00, and its annual dividend per share was $4.00.
What was the per share market price of Van Devender's stock at December 31, 2019?

Question

Quizplus · Accepted Answer

The price-earnings ratio is calculated as the market price per share divided by the earnings per share. Given the P/E ratio of 13.4 and earnings per share of $7.00, the market price per share is 13.4 * $7.00 = $93.80.

At December 31, 2019, Van Devender's Price-Earnings Ratio Was 13