The following data have been taken from your company's financial records for the current year: $\begin{array}{lr}
\text { Earnings per share}&\$4.50\
\text {Market price per share }&\$46.00\
\text {Dividend per share }&\$3.00\
\text {Book value per share }&\$31.00\
\end{array}$
The price-earnings ratio is
A) 10.2.
B) 6.9.
C) 1.5.
D) 15.3.

Question

The following data have been taken from your company's financial records for the current year: $\begin{array}{lr}
\text { Earnings per share}&\$4.50\
\text {Market price per share }&\$46.00\
\text {Dividend per share }&\$3.00\
\text {Book value per share }&\$31.00\
\end{array}$
 The price-earnings ratio is
A) 10.2.
B) 6.9.
C) 1.5.
D) 15.3.

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share: $ \frac{46.00}{4.50} = 10.2 $.

The Following Data Have Been Taken from Your Company's Financial