Answer:
Price-earnings ratio = 29.0789 rounded off to 29.08
Option a is the correct answer.
Explanation:
The price earnings ratio or price earnings multiple is the measure of how much the investors are willing tp pay in price per share for $1 of earnings per share provided by the company. The price earnings ratio can be calculated as follows,
Price earning ratio = Price per share / Net Income per share or earnings per share
First we calculate net income to be = 7600 * 0.03 = $228
The net income per share = 228 / 5100 = $0.04470588235 per share
The price per share = 1.3
Price-earnings ratio = 1.3 / 0.04470588235
Price-earnings ratio = 29.0789 rounded off to 29.08
