Ask Question
28 May, 04:17

A company has earnings per share of $9.90. Its dividend per share is $.65, its market price per share is $126.72, and its book value per share is $103. Its price-earnings ratio equals:

+3
Answers (1)
  1. 28 May, 04:29
    0
    The P/E ratio is 12.8.

    Explanation:

    The price earnings ratio or P/E ratio is a ratio that estimates the amount of money that investors are willing to invest in a company for every $1 of that company's earnings. The Price-earnings ratio is calculated by dividing the price per share by the earnings per share and is also used in the valuation of a company and its stock.

    The P/E ratio is = Price per share / Earnings per share

    P/E ratio = 126.72 / 9.9 = 12.8 times
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company has earnings per share of $9.90. Its dividend per share is $.65, its market price per share is $126.72, and its book value per ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers