If a Stock's P/E Ratio Is 13

question 106

Multiple Choice

If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?

• A)$4.50
• B)$18.00
• C)$22.22
• D)$40.50 P/E = 13.5X
• Then P = 13.5 x $3

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Definitions:

Cerebellum

A region of the brain that plays a significant role in motor control, coordination, and balance.

Coughing

A rapid expulsion of air from the lungs typically to clear the lung airways of fluids, mucus, or material that causes obstruction or irritation.

Swallowing

The process of making food or liquid move from the mouth through the throat and into the esophagus; it's a crucial part of digestion.

Vomiting

The forceful expulsion of stomach contents through the mouth, a reflex act triggered by various conditions.