You are trying to choose between two stocks,Widget and Gadget.Widget has a current stock price of $40.00 and earnings per share of $2.00.Gadget has a current stock price of $30.00 and earnings per share of $1.00.Both are in the media industry and the average P/E ratio for this industry is 12.Use the P/E ratio to determine which stock you anticipate will have higher earnings.
A) Widget
B) Gadget
C) Unable to predict
D) Widget and Gadget will most likely produce equivalent earnings

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The Answer of You are trying to choose between two stocks,Widget and Gadget.Widget has a current stock price of $40.00 and earnings per share of $2.00.Gadget has a current stock price of $30.00 and earnings per share of $1.00.Both are in the media industry and the average P/E ratio for this industry is 12.Use the P/E ratio to determine which stock you anticipate will have higher earnings.
A) Widget
B) Gadget
C) Unable to predict
D) Widget and Gadget will most likely produce equivalent earnings

You Are Trying to Choose Between Two Stocks,Widget and Gadget