ExxonMobil Corp. is one of the largest companies in the world. The company explores, develops, refines, and markets petroleum products. The basic earnings per share for three comparative years were as follows:

The market prices at the end of each year were $42, $39, and $35 for December 31, 2000, 2001, and 2002, respectively.
a. Determine the price-earnings ratio for 2000, 2001, and 2002, using end-of-year prices.
b. Interpret your results over the threeyears.

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Years Ended Dec. 31, 2001 2002 2000 Basic earnings per share 1.69 2.23 $2.55