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

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
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The P/E ratio is calculated as the stock price divided by earnings per share. To find the stock price, multiply the P/E ratio by the earnings per share: 13.5 * $3 = $40.50.

If a Stock's P/E Ratio Is 13