The price-earnings ratio of a stock is given by R(P,E)=P/E where P is the price of the stock and E is the earnings per share. Recently, the price per share of a certain company was $28.36 and the earnings per share were $2.38. Fine the price-earnings ratio.

Personal Finance
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ISBN:9781337669214
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Chapter14: Investing In Stocks And Bonds
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The price-earnings ratio of a stock is given by R(P,E)=P/E where P is the price of the stock and E is the earnings per share. Recently, the price per share of a certain company was $28.36 and the earnings per share were $2.38. Fine the price-earnings ratio. Round to the nearest hundredth.
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A ratio that provides information regarding the share price of a company by relating it to the earnings per share of the company is term as the P/E (price-earnings) ratio.

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