A company's current market value is 5 million dollars. Their stock trades at $48 per share. The company's net income is 1.1 million dollars. The current ratio is 1.3 while their EPS is $0.80. What is the company's P/E ratio?

11.82

1.63

83.33

Explanations

The Price to Earnings ratio can be calculated by the current stock price divided by its earnings per share. The other information is irrelevant. 48/.80 is 60

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Series 7 - General Securities Representative Exam

A company's current market value is 5 million dollars. Their stock trades at $48 per share. The company's net income is 1.1 million dollars. The current ratio is 1.3 while their EPS is $0.80. What is the company's P/E ratio?

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