Question

Beehive Corporation earned $1.80 per share. Assuming a closing price of $40, what's the PE ratio? (Round your answer to the nearest whole number.)

Answer 1

PE ratio = $22

Explanation:

Earning per share = $1.80

The price of the share = $40

PE ratio = Price of the share ÷ Earning per share

PE ratio = $40/$1.8-

PE ratio = $22.

Thank you. :)