Answer:
The correct option is 20 and 12. That is, the P/E ratios for KLA and LAM should be, respectively: 20 and 12.
Explanation:
The price-earnings (P/E) ratio can be calculated using the following formula:
P/E ratio = Market value of equity / Net income ............... (1)
From the question. we hav:
KLA market value of equity = $8,000
KLA net income = $400
LAM market value of equity = $6,000
LAM net income = $500
Using equation (1) and the above information, we have:
P/E ratios for KLA = $8,000 / $400 = 20
P/E ratios for LAM = $6,000 / $500 = 12
Therefore, the correct option is 20 and 12. That is, the P/E ratios for KLA and LAM should be, respectively: 20 and 12.
