Table 18-2

-Refer to Table 18-2.For which company's stock is the P/E ratio closest to what is historically typical?
A) Boeing Co.
B) Eli Lilly and Co.
C) H.J.Heinz and Co.
D) Kellog Co.

Question

Table 18-2
 
-Refer to Table 18-2.For which company's stock is the P/E ratio closest to what is historically typical?
A) Boeing Co. 
B) Eli Lilly and Co. 
C) H.J.Heinz and Co. 
D) Kellog Co.

Quizplus · Accepted Answer

To determine which company's stock is closest to historic P/E ratios, we need to look at the current P/E ratio compared to the average historic P/E ratio for each company. According to the table, the current P/E ratio for H.J. Heinz and Co. is 17.8, which is closest to the average historic P/E ratio of 18.2. Therefore, choice C is the best answer.

Table 18-2 -Refer to Table 18-2.For Which Company's Stock Is the P/E