question archive ABC Corp's stock price at the end of last year was $28

ABC Corp's stock price at the end of last year was $28

Subject:FinancePrice:2.86 Bought14

ABC Corp's stock price at the end of last year was $28.50 and its earnings per share for the year were $1.30. Wh Select one: a. 18.85 b. 20.39 C. 21.92 10 d. 22.58 e 21.48 

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A P/E ratio, is the Price/ Earnings ratio, which is a valuation multiple.

It is defined as

P/E Ratio = Price / EPS

We are given the following

Price = $28.5

EPS = $1.3

Hence

P/E Ratio = Price / EPS

P/E = 28.5/ 1.3

P/E = 21.92x

Hence the correct answer is Option c: 21.92