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

question 50

Multiple Choice

Using the information given here, what is the price-earnings ratio for DEF Company? (Hint: This is a two-step calculation.)
• Earnings = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10

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