A stock currently sells for $100 per share,and has earnings of $2.00 per share.What is the stock's P/E ratio?

Name: A stock currently sells for $100 per share,and has earnings of $2.00 per share.What is the stock's P/E ratio?
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Question

Quizplus · Accepted Answer

The P/E ratio (Price-to-Earnings ratio) is calculated by dividing the market value per share by the earnings per share (EPS). In this case, $100 divided by $2.00 equals a P/E ratio of 50.00.

A Stock Currently Sells for $100 Per Share,and Has Earnings