31.25 25.0

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.6.3MBA
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Question
The P/E ratio for the last 12 months for the company below is most likely to be calculated as which of the following?
Four most recent quarters
EPS
Share Price
$0.36
$42
Q2
Q3
$0.43
Q4
$0.39
$40
$0.42
$56
$62
ces
Multiple Choice
Transcribed Image Text:The P/E ratio for the last 12 months for the company below is most likely to be calculated as which of the following? Four most recent quarters EPS Share Price $0.36 $42 Q2 Q3 $0.43 Q4 $0.39 $40 $0.42 $56 $62 ces Multiple Choice
26.6
0.01
31.25
25.0
Transcribed Image Text:26.6 0.01 31.25 25.0
Expert Solution
Step 1

EPS=Earnings per share =0.36+0.42+0.39+0.43=1.60

Price Of shares =P

P/E=Price/EPS 

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