A stock trades at 24 and earns 4 a share. Its price to earnings ratio …

Question

A stock trades at 24 and earns 4 a share. Its price to earnings ratio is:

Accepted Answer

A. 6

1. The ratio divides share price by earnings per share.
2. 24 divided by 4 gives six.
3. The P/E ratio is 6.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Answer

4

Answer

8

Answer

9

A stock trades at 24 and earns 4 a share. Its price to earnings ratio is:

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