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Amiraneli [1.4K]
3 years ago
11

Select the correct answer.

Mathematics
1 answer:
sweet [91]3 years ago
4 0

Answer: 25

Step-by-step explanation:

The Price to Earnings ratio, AKA, the P/E ratio, is calculated by dividing the Market price of the stock by the Earnings per share.

Earnings per share = Net earnings for the year / Number of shares

= 2,000,000 / 1,000,000

= $2 per share

P/E ratio = Market price of shares/ Earnings per share

= 50 / 2

= 25

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