If a stock currently sells for $40.00 and has annual earnings per share of $3.00, the P/E multiple is:
A)0.075
B)7.0
C)13.33
D)Not shown above.

Name: If a stock currently sells for $40.00 and has annual earnings per share of $3.00, the P/E multiple is: A)0.075 B)7.0 C)13.33 D)Not shown above.
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Question

Quizplus · Accepted Answer

The P/E multiple is calculated by dividing the stock price by the earnings per share. In this case, the P/E multiple is 40 divided by 3, which equals 13.33. Therefore, the correct answer is C.

If a Stock Currently Sells for $40