If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?
A)$4.50
B)$18.00
C)$22.22
D)$40.50 P/E = 13.5X
Then P = 13.5 x $3

Name: If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price? A)$4.50 B)$18.00 C)$22.22 D)$40.50 P/E = 13.5X Then P = 13.5 x $3
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Question

Quizplus · Accepted Answer

The stock's current price is calculated by multiplying the P/E ratio by the earnings per share: 13.5 x $3 = $40.50.

If a Stock's P/E Ratio Is 13