Ask Question
BusinessBusiness
3 September, 08:26

ABC Corp. has a market price of $15 and a Price/Earnings multiple of 10. What was the corporation's Earnings Per Common Share?

+3
Answers (1)
  1. 3 September, 10:49
    0
    The correct answer is: $1,5.

    Explanation:

    The Price-to-Earnings ratio or P/E ratio is the relationship between a company's market value of per-share common stock and its earning per share. It is obtained by dividing the two factors previously mentioned and the result is the P/E ratio which is also called the multiple.

    Thus, in the example:

    P/E ratio = (market value per share) / (earning per share)

    We can deduct:

    Earnings per share = (market value per share) / P/E ratio

    Then:

    Earnings per share = $15/10

    Earnings per share = $1,5
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “ABC Corp. has a market price of $15 and a Price/Earnings multiple of 10. What was the corporation's Earnings Per Common Share? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking servicesa) true b) false
Answers (1)
A market that is dominated by a few firms is called a (n) Select one: a. gerontology. b. theocracy. c. biopsy. d. oligopoly.
Answers (2)
When you purchase an existing business why is it important to know the owners reason for selling?
Answers (1)
Tim's performance pizza is a small restaurant in philadelphia that sells gluten-free pizzas. tim's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas.
Answers (1)
How might the state control the accuracy of principals who are conducting teacher evaluations? Explain.
Answers (1)
New Questions in Business
In perfect competition A. the market demand curve and the individual's demand curve are identical. B. the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic. C.
Answers (1)
With regard to how people use time and their expectations of how it should be managed, members of which type of culture value efficiency production and fast results?
Answers (1)
How would u approach a fellow co-worker consistently does not perform hand-hygiene when it is indicated or appropriate.
Answers (1)
Which of the following statements is FALSE? A. The effective annual rate indicates the amount of interest that will be earned at the end of the year. B. The annual percentage rate indicates the amount of simple interest earned in one year. C.
Answers (1)
Match the business with the appropriate cost system (s) for that business using the number of the cost system where 1 = job order costing, 2 = process costing, and 3 = activity-based costing. a. Ketcher, Tryer, and Friar, attorneys-at-law b.
Answers (1)
Home » Business » ABC Corp. has a market price of $15 and a Price/Earnings multiple of 10. What was the corporation's Earnings Per Common Share?
Sign Up Forgot Password?