A share priced at 24 with earnings of 4 and a rival priced at 40 with …

Question

A share priced at 24 with earnings of 4 and a rival priced at 40 with earnings of 4 shows the rival's P/E is:

Accepted Answer

D. 10

1. Divide the price by the earnings per share.
2. 40 divided by 4 is ten.
3. The rival trades on a P/E of 10.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Answer

12

Answer

14

Answer

16

A share priced at 24 with earnings of 4 and a rival priced at 40 with earnings of 4 shows the rival's P/E is:

Keep practising Stock Valuation