If a stock currently sells for $40.00 and has annual earnings per share of $3.00,the P/E multiple is:

Name: If a stock currently sells for $40.00 and has annual earnings per share of $3.00,the P/E multiple is:
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Question

Quizplus · Accepted Answer

The P/E multiple is calculated by dividing the stock's price by its earnings per share.

P/E Multiple = Stock Price / Earnings per Share

In this case,

P/E Multiple = $40.00 / $3.00

P/E Multiple = 13.33

Therefore, the correct answer is (C) 13.33.

If a Stock Currently Sells for $40