Data concerning Bouerneuf Company's common stock follow: $$\begin{array} { l r }
\text { Book value per share........... } & \$ 24.00 \
\text { Market value per share...... } & \$ 18.00 \
\text { Earnings per share ............. } & \$ 6.00 \
\text { Par value per share............. } & \$ 4.00 \
\text { Dividend per share ........... } & \$ 1.00
\end{array}$$ The price-earnings ratio would be:
A)2.00
B)2.67
C)3.00
D)4.00

Question

Data concerning Bouerneuf Company's common stock follow: $$\begin{array} { l r } 
\text { Book value per share........... } & \$ 24.00 \
\text { Market value per share...... } & \$ 18.00 \
\text { Earnings per share ............. } & \$ 6.00 \
\text { Par value per share............. } & \$ 4.00 \
\text { Dividend per share ........... } & \$ 1.00
\end{array}$$ The price-earnings ratio would be:
A)2.00
B)2.67
C)3.00
D)4.00

Quizplus · Accepted Answer

The price-earnings ratio is calculated by dividing the market value per share by the earnings per share: $ \frac{\$18.00}{\$6.00} = 3.00 $.

Data Concerning Bouerneuf Company's Common Stock Follow The Price-Earnings Ratio Would Be: A)2

Data Concerning Bouerneuf Company's Common Stock Follow The Price-Earnings Ratio Would Be:
A)2