ExxonMobil Corporation 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 $56, $51, and $41 for December 31, 2005, 2004, and 2003, respectively.
a. Determine the price-earnings ratio for 2005, 2004, and 2003, using end-of-year prices.
Round to one decimal place.
b. Interpret your results over the threeyears.

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Years Ended Dec. 31, 2005 2004 2003 Basic earnings per share 5.76 3.9 3.24