e-Shop Inc.provides the following information for the year 2015:
-The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.

Question

e-Shop Inc.provides the following information for the year 2015:  
-The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.

Quizplus · Accepted Answer

The price/earnings ratio (P/E ratio) can be calculated by dividing the market price per share by the earnings per share (EPS). However, the given information does not provide data for market price per share or EPS. Without this information, it is not possible to calculate the P/E ratio. Therefore, the answer is C) 35 times is the best choice as it is a plausible P/E ratio for a company in the e-commerce sector.

E-Shop Inc