Using the Information Given Here, What Is the Price-Earnings Ratio

question 106

Multiple Choice

Using the information given here, what is the price-earnings ratio for DEF Company?
• After-tax income = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10
• Earnings per share = $3.00

• A) $3.00
• B) $4.00
• C) $7.50
• D) $10.00
• E) $20.00

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