Problem 4.05 (Price-Earnings Ratio) eBook company has an EPS of $4.05, a book value per share of $40.50, and a market/book ratio of 1.9x. What is its P/E ratio? The stock price should be rounded termediate calculations. Round your answers to two decimal places.

Problem 4.05 (Price-Earnings Ratio) eBook company has an EPS of $4.05, a book value per share of $40.50, and a market/book ratio of 1.9x. What is its P/E ratio? The stock price should be rounded termediate calculations. Round your answers to two decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. Problem 4.05 (Price-Earnings Ratio)
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A company has an EPS of $4.05, a book value per share of $40.50, and a market/book ratio of 1.9x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round
intermediate calculations. Round your answers to two decimal places.

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