Question

Sylia Corporation’s EPS ratio is 2.1 and its earnings were $3 million last year. The market price of its stock is $35. What is the company’s P/E ratio?

Answer 1

To calculate the price to earnings ratio:
P/E ratio = market price per share/earnings per share

Market price per share = $35
Earnings per share ratio = 2.1

P/E ratio = $35/2.1 
P/E ratio = 16.67

Answer 2

Sylia Corporation’s P/E ratio is 16.67.

What is P/E ratio?

The PE ratio measures how much an investor is willing to pay for every dollar of earnings.

To calculate the price to earnings ratio:

P/E ratio

= Market price per share / Earnings per share

Market price per share

= $35

Earnings per share ratio

= 2.1

P/E ratio

= $35 / 2.1

= 16.67

Hence, the company’s P/E ratio is 16.67

Learn more about P/E ratio here: https://brainly.com/question/18484440

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