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9 May, 10:01

Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share 6.00Par Value per share 4.00Dividend per share 1.00The price-earnings ratio would be

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  1. 9 May, 10:19
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    3

    Explanation:

    Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows:

    Given that,

    Book value per share = 24.00

    Market Value per share = 18.00

    Earnings per share = 6.00

    Par Value per share = 4.00

    Dividend per share = 1.00

    P/E ratio = Market price : EPS

    = 18 : 6

    = 3.0

    Therefore, the price-earnings ratio would be 3.
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