question archive 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
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