A stock trades at a P/E of six. Analysts say it trades at a multiple of:
ATwo
BFour
CSix
DTen
Answer & Solution
Correct answer: C. Six
1. The multiple is just the P/E value.
2. The P/E here is six.
3. So the multiple is six.
_Source: OpenStax Principles of Finance, Chapter 11, Stocks and Stock Valuation._
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