SlideShare a Scribd company logo
1 of 1
Download to read offline
5. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of
1.2x. What is its P/E ratio?
Solution
P/E ratio = Market Price per share/EPS = $ 24 / $ 2.00 = 12.00
Working: EPS stands for Earning Per share. Market Price per share
= Book Value per share x market/book ratio = $ 20 x 1.2 = $ 24

More Related Content

More from mampbellzumberge517

Question 1 Why was it important to start with true-breeding plants.pdf
Question 1 Why was it important to start with true-breeding plants.pdfQuestion 1 Why was it important to start with true-breeding plants.pdf
Question 1 Why was it important to start with true-breeding plants.pdf
mampbellzumberge517
 
Please provide a summary of the current economic crises existing in .pdf
Please provide a summary of the current economic crises existing in .pdfPlease provide a summary of the current economic crises existing in .pdf
Please provide a summary of the current economic crises existing in .pdf
mampbellzumberge517
 
Part 1 Implement a superclass Employee that has the following field.pdf
Part 1 Implement a superclass Employee that has the following field.pdfPart 1 Implement a superclass Employee that has the following field.pdf
Part 1 Implement a superclass Employee that has the following field.pdf
mampbellzumberge517
 
List the two types of sources of funds; list first the type having t.pdf
List the two types of sources of funds; list first the type having t.pdfList the two types of sources of funds; list first the type having t.pdf
List the two types of sources of funds; list first the type having t.pdf
mampbellzumberge517
 
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdfKingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
mampbellzumberge517
 
EthicsYou are a city prosecutor, and a terrible crime has been co.pdf
EthicsYou are a city prosecutor, and a terrible crime has been co.pdfEthicsYou are a city prosecutor, and a terrible crime has been co.pdf
EthicsYou are a city prosecutor, and a terrible crime has been co.pdf
mampbellzumberge517
 
Collected from bottom of stream. Organism appeared to be scavenging o.pdf
Collected from bottom of stream. Organism appeared to be scavenging o.pdfCollected from bottom of stream. Organism appeared to be scavenging o.pdf
Collected from bottom of stream. Organism appeared to be scavenging o.pdf
mampbellzumberge517
 
a) How are X-linked genes inherited in humans Be able to use this i.pdf
a) How are X-linked genes inherited in humans Be able to use this i.pdfa) How are X-linked genes inherited in humans Be able to use this i.pdf
a) How are X-linked genes inherited in humans Be able to use this i.pdf
mampbellzumberge517
 

More from mampbellzumberge517 (20)

identify the dimensioning errors for the following objects. i.pdf
identify the dimensioning errors for the following objects. i.pdfidentify the dimensioning errors for the following objects. i.pdf
identify the dimensioning errors for the following objects. i.pdf
 
Question 1 Why was it important to start with true-breeding plants.pdf
Question 1 Why was it important to start with true-breeding plants.pdfQuestion 1 Why was it important to start with true-breeding plants.pdf
Question 1 Why was it important to start with true-breeding plants.pdf
 
Presentation Layer is concerned with which of the following a. How b.pdf
Presentation Layer is concerned with which of the following  a. How b.pdfPresentation Layer is concerned with which of the following  a. How b.pdf
Presentation Layer is concerned with which of the following a. How b.pdf
 
Please provide a summary of the current economic crises existing in .pdf
Please provide a summary of the current economic crises existing in .pdfPlease provide a summary of the current economic crises existing in .pdf
Please provide a summary of the current economic crises existing in .pdf
 
Part 1 Implement a superclass Employee that has the following field.pdf
Part 1 Implement a superclass Employee that has the following field.pdfPart 1 Implement a superclass Employee that has the following field.pdf
Part 1 Implement a superclass Employee that has the following field.pdf
 
List the two types of sources of funds; list first the type having t.pdf
List the two types of sources of funds; list first the type having t.pdfList the two types of sources of funds; list first the type having t.pdf
List the two types of sources of funds; list first the type having t.pdf
 
Lewis Carroll (actual name Charles Dodgson, 1832 - 1898) was one far.pdf
Lewis Carroll (actual name Charles Dodgson, 1832 - 1898) was one far.pdfLewis Carroll (actual name Charles Dodgson, 1832 - 1898) was one far.pdf
Lewis Carroll (actual name Charles Dodgson, 1832 - 1898) was one far.pdf
 
John and his friend Robert are going to start college next year and a.pdf
John and his friend Robert are going to start college next year and a.pdfJohn and his friend Robert are going to start college next year and a.pdf
John and his friend Robert are going to start college next year and a.pdf
 
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdfKingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
Kingdom fungi Rhizopus produces 1n spores in two different ways fro.pdf
 
In what ways arc planarians more advanced than a jellyfish How are t.pdf
In what ways arc planarians more advanced than a jellyfish How are t.pdfIn what ways arc planarians more advanced than a jellyfish How are t.pdf
In what ways arc planarians more advanced than a jellyfish How are t.pdf
 
In general, explain the connection between a Happiness or Utility fu.pdf
In general, explain the connection between a Happiness or Utility fu.pdfIn general, explain the connection between a Happiness or Utility fu.pdf
In general, explain the connection between a Happiness or Utility fu.pdf
 
Imagine life on Earth without fungi. How would it be different Your.pdf
Imagine life on Earth without fungi. How would it be different Your.pdfImagine life on Earth without fungi. How would it be different Your.pdf
Imagine life on Earth without fungi. How would it be different Your.pdf
 
EthicsYou are a city prosecutor, and a terrible crime has been co.pdf
EthicsYou are a city prosecutor, and a terrible crime has been co.pdfEthicsYou are a city prosecutor, and a terrible crime has been co.pdf
EthicsYou are a city prosecutor, and a terrible crime has been co.pdf
 
Collected from bottom of stream. Organism appeared to be scavenging o.pdf
Collected from bottom of stream. Organism appeared to be scavenging o.pdfCollected from bottom of stream. Organism appeared to be scavenging o.pdf
Collected from bottom of stream. Organism appeared to be scavenging o.pdf
 
Dorset sheep have horns in both sexes while Suffolk sheep have no ho.pdf
Dorset sheep have horns in both sexes while Suffolk sheep have no ho.pdfDorset sheep have horns in both sexes while Suffolk sheep have no ho.pdf
Dorset sheep have horns in both sexes while Suffolk sheep have no ho.pdf
 
Discuss the differences between processes and projects.Solution.pdf
Discuss the differences between processes and projects.Solution.pdfDiscuss the differences between processes and projects.Solution.pdf
Discuss the differences between processes and projects.Solution.pdf
 
An example of a protein that mediates the response of many bacteria t.pdf
An example of a protein that mediates the response of many bacteria t.pdfAn example of a protein that mediates the response of many bacteria t.pdf
An example of a protein that mediates the response of many bacteria t.pdf
 
Airways are broken up into 2 divisions. What are they please easy e.pdf
Airways are broken up into 2 divisions. What are they please easy e.pdfAirways are broken up into 2 divisions. What are they please easy e.pdf
Airways are broken up into 2 divisions. What are they please easy e.pdf
 
a) How are X-linked genes inherited in humans Be able to use this i.pdf
a) How are X-linked genes inherited in humans Be able to use this i.pdfa) How are X-linked genes inherited in humans Be able to use this i.pdf
a) How are X-linked genes inherited in humans Be able to use this i.pdf
 
4. A oneway analysis of variance shows, F(3,27)= 3.49. What is the P.pdf
4. A oneway analysis of variance shows, F(3,27)= 3.49. What is the P.pdf4. A oneway analysis of variance shows, F(3,27)= 3.49. What is the P.pdf
4. A oneway analysis of variance shows, F(3,27)= 3.49. What is the P.pdf
 

Recently uploaded

Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
AnaAcapella
 
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lessonQUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
httgc7rh9c
 

Recently uploaded (20)

How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
 
PANDITA RAMABAI- Indian political thought GENDER.pptx
PANDITA RAMABAI- Indian political thought GENDER.pptxPANDITA RAMABAI- Indian political thought GENDER.pptx
PANDITA RAMABAI- Indian political thought GENDER.pptx
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
 
VAMOS CUIDAR DO NOSSO PLANETA! .
VAMOS CUIDAR DO NOSSO PLANETA!                    .VAMOS CUIDAR DO NOSSO PLANETA!                    .
VAMOS CUIDAR DO NOSSO PLANETA! .
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
Economic Importance Of Fungi In Food Additives
Economic Importance Of Fungi In Food AdditivesEconomic Importance Of Fungi In Food Additives
Economic Importance Of Fungi In Food Additives
 
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdfUGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & Systems
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17
 
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lessonQUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
 
Our Environment Class 10 Science Notes pdf
Our Environment Class 10 Science Notes pdfOur Environment Class 10 Science Notes pdf
Our Environment Class 10 Science Notes pdf
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 

5. A company has an EPS of $2.00, a book value per share of $20, and .pdf

  • 1. 5. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. What is its P/E ratio? Solution P/E ratio = Market Price per share/EPS = $ 24 / $ 2.00 = 12.00 Working: EPS stands for Earning Per share. Market Price per share = Book Value per share x market/book ratio = $ 20 x 1.2 = $ 24