Question

Sally is looking to invest in Agricon Products when its P/E ratio is lower than 15. Each share is currently projected to earn $1.30 this year. Which of the stock prices listed below would give the P/E ratio she is looking for?
I. $18 a share
II. $19 a share
III. $20 a share

Answer 1

The right answer for the question that is being asked and shown above is that: "III. $20 a share ." Sally is looking to invest in Agricon Products when its P/E ratio is lower than 15. Each share is currently projected to earn $1.30 this year. The stock prices listed below would give the P/E ratio she is looking for is that III. $20 a share