Question: Firm B's common stock has a par value per share of $1, market value per share of $72, dividends per share of $4, earnings per

Firm B's common stock has a par value per share of $1, market value per share of $72, dividends per share of $4, earnings per share of $8, and a book value per share of $64. What is Firm B's price/earnings ratio?

Multiple choice question.

$72 / $4 = 18.0 per share

$64 / $8 = 8.0 per share

$72 / $8 = 9.0 per share

$60 / $8 = 7.50 per share

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