Ask Question
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)
  1. 11 May, 07:07
    0
    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.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You expect Whirlpool Corporation (WHR) to have earnings per share of $6.10 over the coming year. If Whirlpool stock is currently trading at ...” 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