Example 7:
Suppose shares in Company A have a market value of $42.50, and the company makes a...
Mathematics, 23.04.2020 01:15 jjcooper05
Example 7:
Suppose shares in Company A have a market value of $42.50, and the company makes a 12-month profit of $4.85 per share, while shares in Company B have a market value of $8, and they make a profit per share of $0.80 for the same 12-month period.
What is the price-to-earnings ratio for each company for that time period?
Which shares have been a better investment?
Answers: 3
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