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Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the nearest whole number)?
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Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the nearest whole number)?

User BenoitLondon
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1 Answer

2 votes

Answer:

60

Step-by-step explanation:

price-earnings ratio = price / earnings per share

earnings per share = net income / shares outstanding = $150 / 300 = $0.50

$30 / $0.50 = 60

User Goombaloon
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