Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share

Question

3 years ago

5

6.00Par Value per share 4.00Dividend per share 1.00The price-earnings ratio would be

1 answer:

natali 33 [55] · Answer 1 · 2022-03-30T18:53:51+03:00

Answer:

3

Explanation:

Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows:

Given that,

Book value per share = 24.00

Market Value per share = 18.00

Earnings per share = 6.00

Par Value per share = 4.00

Dividend per share = 1.00

P/E ratio = Market price ÷ EPS

= 18 ÷ 6

= 3.0

Therefore, the price-earnings ratio would be 3.