In October 2013,Abercrombie & Fitch (ANF)posted a price-earnings ratio of 13.If the price of the stock at that time was $36 per share,which of the following must have been true?

Question

Quizplus · Accepted Answer

The formula for calculating the price-earnings ratio is P/E = Price per share / Earnings per share.
From the given information, we know that P/E = 13 and Price per share = $36.
Rearranging the formula, we get Earnings per share = Price per share / P/E = $36 / 13 = $2.77.
Therefore, option B must be true and is the correct answer. Options A, C, and D cannot be determined with the given information.

In October 2013,Abercrombie & Fitch (ANF)posted a Price-Earnings Ratio of 13.If