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A company has an EPS of $2.40, a book value per share of $22.56, and a market/book ratio of 2.5x. What is its P/E ratio?

A company has an EPS of $2.40, a book value per share of $22.56, and a market/book ratio of 2.5x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.

Top Answer

(1)  Market/book ratio = 2.5x  Market/$22.56 = 2.5x... View the full answer

2 comments
  • 23.50x
    • HELP4FUTURE
    • May 17, 2016 at 11:16am
  • Sorry, it was $23.50x
    • HELP4FUTURE
    • May 17, 2016 at 11:17am

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