P/E Ratio and Stock Price International Business Machines (IBM)has earnings per share of $6.85 and a P/E ratio of 15.19.What is the stock price?

Question

Quizplus · Accepted Answer

The formula for calculating the stock price using P/E ratio is:

Stock price = earnings per share × P/E ratio

Substituting the given values, we get:

Stock price = $6.85 × 15.19 = $104.05

Therefore, the stock price of IBM is $104.05. The correct answer is D.

P/E Ratio and Stock Price International Business Machines (IBM)has Earnings