Solutions to Chapter 4 Problems
If the price of the stock is $ 45.00 and the Earnings per Share is $ 9.00, then the P / E Ratio is: 2 5 9 15 Answer = b: Simply divide the price of the stock of $ 45.00 by the Earning per Share of $ 9.00 = 5. The company is selling for 5 times earnings. ................
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