The price-earnings ratio is calculated as the current market price divided by the diluted earnings per share. This answer uses basic earnings per share instead of diluted earnings per share.
The price-earnings ratio is calculated as the current market price divided by the diluted earnings per share. This answer uses par value instead of diluted earnings per share.
Unless an exam question says to use the basic earnings per share, the price-earnings ratio is calculated as the current market price divided by the diluted earnings per share. The market price is $45 and the diluted earnings per share is $9. This gives a price-earnings ratio of 5.
The price-earnings ratio is calculated as the current market price divided by the diluted earnings per share. This answer uses dividends per share instead of diluted earnings per share.
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The price-earnings ratio for Hamilton's common stock is
