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A share trading at 50 with earnings per share of 5 has a ratio of:
A10
B15
C20
D25
Answer & Solution
Correct answer: A. 10
1. Divide 50 by 5.
2. That gives ten.
3. The ratio is 10.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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