A company with an EPS of $2.00 and a P/E ratio of 10.0 has a market price of $5.00 a share.

Name: A company with an EPS of $2.00 and a P/E ratio of 10.0 has a market price of $5.00 a share.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The market price of a share can be calculated as P/E ratio * EPS. 
So, in this case, market price = 10 * $2.00 = $20.00. 
Therefore, the given market price of $5.00 is incorrect for an EPS of $2.00 and P/E ratio of 10.0.

A Company with an EPS of $2