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svetlana [45]
3 years ago
13

A stock has a Price/Earnings Ratio (P/E) of 4.5. Earnings per share (EPS) of these stocks is 8. What is the stock’s market value

? $14 $25  $36 $81 $40
Social Studies
1 answer:
Burka [1]3 years ago
4 0
The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share<span> price relative to its </span>per-share earnings. <span>

</span>The Price/Earnings Ratio (P/E Ratio) can be calculated as Market Value/Earnings per Share.

P/E = MV/EPS
Substituting the values we have:
4.5 = MV/8
MV = $36
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