Vang Corp.'s stock price at the end of last year was $38 and its earnings per share for the year were $2.30. What was its P/E ratio? Select the correct answer. a. 16.52 b. 16.82 c. 15.92 d. 16.22 e. 15.62

Question

Business

Alia Wagner

3 July, 22:30

Vang Corp.'s stock price at the end of last year was $38 and its earnings per share for the year were $2.30. What was its P/E ratio? Select the correct answer. a. 16.52 b. 16.82 c. 15.92 d. 16.22 e. 15.62

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Answers (1)

Know the Answer?

Leroy Wade · Answer 1

a. 16.52

Explanation:

The P/E ration is the ratio of an entity's share price to the earnings per share. It is a measure used to measure the accuracy of the valuation of one company's share with another.

Given;

Share price = $38

Earnings per share = $2.30

P/E ratio = share price/earnings per share

= $38/$2.30

= 16.52

Option a.