Fill in the Blank QuestionFill in the blank question.If the price per share is equal to $75.00 and earnings per share is equal to $2.50, then the price-earnings ratio is equal to .
Question
Fill in the Blank QuestionFill in the blank question.If the price per share is equal to 2.50, then the price-earnings ratio is equal to .
Solution
To find the price-earnings ratio, we need to divide the price per share by the earnings per share.
Given that the price per share is 2.50, we can calculate the price-earnings ratio as follows:
Price-earnings ratio = Price per share / Earnings per share
Substituting the given values:
Price-earnings ratio = 2.50
Simplifying the division:
Price-earnings ratio = 30
Therefore, the price-earnings ratio is equal to 30.
Similar Questions
Fill in the Blank QuestionFill in the blank question.Price-earnings ratio is equal to the price of a share of stock divided by the corporation's per of stock.
Fill in the Blank QuestionFill in the blank question.The basic earnings per share ratio helps determine the amount of profit a company earned for each share of outstanding stock.
Fill in the Blank QuestionFill in the blank question.Earnings per share is equal to income divided by the number of outstanding of a firm's common stock.
earnings per share is the ratio of net income after taxes to the number of common stock shares outstanding.
A stock's price to earnings (P/E) ratio is determined in what manner?By dividing its annual earnings by the number of outstanding sharesBy dividing its market value by its original purchase priceBy dividing its annual earnings by its original purchase priceBy dividing its market value by the company's annual earnings per share
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.