SIE practice questionhardP/E Ratio
A stock trades at $55 and has a P/E ratio of 11. What are the company’s earnings per share (EPS)?
- A$5.00✓ Correct answer
- B$11.00
- C$6.82
- D$60.50
Explanation
Why A — $5.00
EPS = Price / P/E = $55 / 11 = $5. The other answers use the wrong math.
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