Posted by Sparkle100100 3 years ago In:

Sparkle100100
Sparkle100100 Asked:

Stock P/E

A stock is selling for $100.00 a share. The company earned $5.00 a share and its current dividend is $2.50 a share. What id the stock P/E ratio. Please show me how to calculate this problem.

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lou612
lou612 Answered:

PRICE / EARNINGS    100/5  = 20   20 P/E   NO TRICKS

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Sparkle100100
Sparkle100100 Answered:

Thanks but what do i do with the 2.50 dividends

If You Fall! Rise Up And Try & Try Again You Will Succed Bless Up.
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lou612
lou612 Answered:

Nothing      do not need it       some teacher giving you more info then you need to ans. Question

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Sparkle100100
Sparkle100100 Answered:

One of the teacher said its 2.5 percent i asked her how she got it she said find out for myself. I am going crazy trying to find out.

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lou612
lou612 Answered:

P/e   means price to earning ratio       price / years earning   as a example   jnj share price   56.35  earning 4.57      56.35/4.57  p/e 12.33

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lou612
lou612 Answered:

THE 2.5% IS THE YIELD NOT P/E   $2.50 /100    = 2.5%       

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Schwija
Schwija Answered:

the p/e would be 20 for this stock.  The calculation is p ($100 a share)/e ($5 earning a share)  This is a good thing to gage the value of a stock but forward p/e might be better.  To get this number replace the earnings with next years estimated earnings.  A 20 p/e could be considered fairly costly, but if the forward p/e is 10 the stock might be worth looking at.

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Sparkle100100
Sparkle100100 Answered:

So the correct answer is 100/5 = 20, now you see why i have to come to this site our teachers is either quacks or to busy to explain anything. Thank you a lot.

If You Fall! Rise Up And Try & Try Again You Will Succed Bless Up.
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