Question

Deep Falls Timber stock sold for $6.50 a share as of 2015. What was the price-earnings ratio at that time?

Answer 1

Answer:

28.15

Explanation:

Calculation for Price earnings ratio using this formula

Price earnings ratio=Price per share / Earnings per share

Let plug in the formula

Price earnings ratio= $6.50 / ($50,800 / 220,000)

Price earnings ratio= $6.50 / 0.230909091

Price earnings ratio= 28.15

Therefore the Price earnings ratio at that time will be 28.15