Question

company x has a p/e ratio of 10 and a stock price of $50 per share. calculate earnings per share of the company. group of answer choices $10 per share $5 per share $6 per share $0.20 per share

Answer 1

The earnings per share (EPS) for company X with a P/E ratio of 10 and a stock price of $50 per share is $5 per share.

Step-by-step explanation:

To calculate the earnings per share (EPS) for company X, which has a P/E ratio of 10 and a stock price of $50 per share, you can use the following formula:

EPS = Stock Price / P/E Ratio

Using the given figures:

EPS = $50 / 10

EPS = $5 per share

This means that for every share of company X, the earnings amount to $5.