QuestionAugust 3, 2025

Last year, Hampton Electronics earned 2.00 per share. If a share of its stock is selling for 60 what is the firm's P-E ratio? Multiple Choice 0.03 60 30 33

Last year, Hampton Electronics earned 2.00 per share. If a share of its stock is selling for 60 what is the firm's P-E ratio? Multiple Choice 0.03 60 30 33
Last year, Hampton Electronics earned 2.00 per share. If a share of its stock is selling for 60 what is the firm's P-E ratio?
Multiple Choice
0.03
60
30
33

Solution
4.5(353 votes)

Answer

0.3 Explanation 1. Identify the formula for P.E ratio The Price-to-Earnings (P.E) ratio is calculated using the formula: **P.E ratio = \frac{\text{Price per share}}{\text{Earnings per share}}**. 2. Calculate the P.E ratio Substitute the given values into the formula: **P.E ratio = \frac{60}{200}**.

Explanation

1. Identify the formula for P.E ratio<br /> The Price-to-Earnings (P.E) ratio is calculated using the formula: **P.E ratio = \frac{\text{Price per share}}{\text{Earnings per share}}**.<br />2. Calculate the P.E ratio<br /> Substitute the given values into the formula: **P.E ratio = \frac{60}{200}**.
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