SIE practice questionmediumP/E Ratio
If a stock trades at $60 and has earnings per share of $4, what is its P/E ratio?
- A56
- B8
- C15✓ Correct answer
- D240
Explanation
Why C — 15
P/E ratio = price ÷ EPS = $60 ÷ $4 = 15. The other calculations are incorrect.
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