If the stock price is $20,earnings per share is $1,and the earnings growth rate is 5%,then the PEG ratio is four.

Name: If the stock price is $20,earnings per share is $1,and the earnings growth rate is 5%,then the PEG ratio is four.
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Quizplus · Accepted Answer

PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate. In this case, the P/E ratio is 20/1 = 20 and the earnings growth rate is 5%. So the PEG ratio is 20/5= 4. Therefore, the statement is true.

If the Stock Price Is $20,earnings Per Share Is $1,and