The price/earnings ratio is the market price of the stock divided by the company's most recent annual earnings per share. This is the market price divided by the annual dividend per share. The price/earnings ratio is the market price of the stock divided by the company's most recent annual earnings per share. This is the par value of $10 per share divided by the dividend of $3.50 per share. The price/earnings ratio is the market price of the stock divided by the company's most recent annual earnings per share. This is the par value of $10 per share divided by the earnings per share of $4.80. The price/earnings ratio is the market price of the stock divided by the company's most recent annual earnings per share. That is $34 / $4.80, or $7.08.
|