Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be___________?
Correct answer: A. 8.57 times
- A. 8.57 times
- B. 8.57%
- C. 0.11 times
- D. 11%
Explanation
The price-earnings ratio is calculated as market price per share divided by earnings per share: $30 ÷ $3.5 = 8.57. It is expressed in times, not as a percentage.
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