CURRENT OBJECTIVE

Define stock terminology

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Question

The PE ratio of a company is defined as

$PE$ Ratio $=\frac{\text{P}\text{r}\text{i}\text{c}\text{e}\text{p}\text{e}\text{r}\text{S}\text{h}\text{a}\text{r}\text{e}}{\text{E}\text{a}\text{r}\text{n}\text{i}\text{n}\text{g}\text{s}\text{p}\text{e}\text{r}\text{S}\text{h}\text{a}\text{r}\text{e}}.$

If a company has issued $2$ million shares, the share price is $$125$ per share, and the company has generated $$18$ million in earnings, calculate the PE ratio.

Round your answer to the nearest hundredth.

Do NOT round until you have calculated the final answer.

Pro

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