If a share of stock in Skylight Chili sells for $75, the retained earnings per share are $5, and the dividend per share is $2, then the price-earnings ratio is 15.

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Stavro Sophocleous · Accepted Answer

Final Answer : False, Explanation :  The price-earnings ratio is calculated by dividing the market value per share by the earnings per share (EPS). The given information does not provide the earnings per share directly, and without it, we cannot accurately calculate the price-earnings ratio. The retained earnings and dividend per share do not directly provide the EPS or allow for the calculation of the price-earnings ratio as described.

If a share of stock in Skylight Chili sells for $75, the retained earnings per share are $5, and the dividend per share is $2, then the price-earnings ratio is 15.

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