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Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share 6.00Par Value per share 4.00Dividend per share 1.00The price-earnings ratio would be

Respuesta :

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.

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