If a company has $2.00 EPS a cash flow per share of $3.00 and a price flow ratio of 8.0x, what is the price earning ratio?
Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS), so your equation is 8.0 x 3.00 = 24/2, which leaves you with P/E = 12X. ChaCha!
Answered by Kristine C. -
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