Last Year, New Flying Industries Had a Price-Earnings Ratio of 15

Multiple Choice

Last year, New Flying Industries had a price-earnings ratio of 15. This year, the price earnings ratio is 18. Based on this information, it can be stated with certainty that:

A) The price per share increased.
B) The earnings per share decreased.
C) Investors are paying a higher price for each share of stock purchased.
D) Investors are receiving a higher rate of return this year.
E) Either the price per share, the earnings per share, or both changed.