You expect Whirlpool Corporation (WHR) to have earnings per share of $6.10 over the coming year. If Whirlpool stock is currently trading at $87.00 per share, then Whirlpool's P/E ratio is closest to:

A. 13.50

B. 17.00

C. 7.00

D. 14.25

Question

Business

Kayla Castillo

11 May, 06:46

You expect Whirlpool Corporation (WHR) to have earnings per share of $6.10 over the coming year. If Whirlpool stock is currently trading at $87.00 per share, then Whirlpool's P/E ratio is closest to:

A. 13.50

B. 17.00

C. 7.00

D. 14.25

+5

Answers (1)

Know the Answer?

Jacey Simpson · Answer 1

D. 14.25

Explanation:

Data provided as per the question below:-

Marginal Propensity to Save = $87.00

Earnings per share = $6.10

The computation of price earning ratio is shown below-

Price earning ratio = Marginal Propensity to Save : Earnings per share

= $87.00 : $6.10

= 14.25

Therefore for computing, the we simply applied the above formula.

You expect Whirlpool Corporation (WHR) to have earnings per share of $6.10 over the coming year. If Whirlpool stock is currently trading at $87.00 per share, then Whirlpool's P/E ratio is closest to:A. 13.50B. 17.00C. 7.00D. 14.25

You expect Whirlpool Corporation (WHR) to have earnings per share of $6.10 over the coming year. If Whirlpool stock is currently trading at $87.00 per share, then Whirlpool's P/E ratio is closest to:

A. 13.50

B. 17.00

C. 7.00

D. 14.25