Webster,Inc What Is the Price/Earnings Ratio?
A)2

Multiple Choice

Webster,Inc.has the following information: $\begin{array} { ll } \text {Net income }&30.000\\ \text { Stock price (per share) }&\$20\\ \text { Average number of shares outstanding}&10,000\\ \text {Average amount of stockholders' equity }&\$90,000\\\end{array}$
What is the Price/Earnings ratio?

A) 2.2
B) 4.0
C) 6.7
D) 20.0