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View Full Version : Finance Price Earnings ratio

lindab1123
Sep 9, 2009, 10:40 AM
common stck w/ market value of 1.5 times its book value of 15.00 and their EPS is $1.40- what is the companys p/e ratio?
ArcSine
Sep 9, 2009, 12:09 PM
The P:E ratio is

\frac{\text{Market Share Price}}{\text{Earnings Per Share}}