Question

PLEASE HELP!

A company's P/E ratio is the price of a share of its stock divided by its earnings per share. Suppose you know a company's P/E ratio and its share price. How could you calculate its earnings per share?

A.Divide its share price by its P/E ratio.
B. Take the reciprocal of its share price.
C. Take the reciprocal of its P/E ratio.
D. Divide its P/E ratio by its share price.

Answer 1

The answer is D





Bc





It just is

Answer 2

The answer is D because The P/E ratio is calculated by dividing a company's current stock price by its earnings per share (EPS)