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Smith Company the following information on the financial statements: Net Income $50,000 Earnings Per Share 0.50 per share Average number of Common Shares Outstanding 250,000 shares Market Price $2 per
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Smith Company the following information on the financial statements: Net Income $50,000 Earnings Per Share 0.50 per share Average number of Common Shares Outstanding 250,000 shares Market Price $2 per share What is the price/earnings ratio (to the nearest whole number)

User RGG
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5 votes

Answer:

4

Step-by-step explanation:

The price/earnings ratio is calculated as the market price of $2 per share / 0.50 earnings per share = 4

User Dontbyteme
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