A share sells for $20.The company has $64 million in earnings and 200 million outstanding shares.The P/E ratio for the company is:
A)62.5.
B)200.
C)0.31.
D)6.4.

Name: A share sells for $20.The company has $64 million in earnings and 200 million outstanding shares.The P/E ratio for the company is: A)62.5. B)200. C)0.31. D)6.4.
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Question

Quizplus · Accepted Answer

EPS = Net Income/Avg.# of common shares outstanding
$64,000,000/200,000,000 = $0.32
P/E ratio = Stock Price (per share)/EPS
$20)00/$0.32 = 62.5.

A Share Sells for $20