Respuesta :
The price-earnings ratio on common stock for 2010 is 10.1%.
The price-earnings ratio, sometimes referred to as the P/E ratio, P/E, or PER, measures how much a company charges for its shares to how much it earns per share. The ratio is employed to evaluate businesses and determine if they are over or undervalued.
The price/earnings ratio, often known as the P/E ratio, informs investors of the value of a company. The P/E ratio is simply the stock price divided by the company's EPS for a given time period, such as the previous 12 months. How much investors are willing to pay per share for $1 of earnings is expressed by the price/earnings ratio.
Price earnings ratio
=(net income +interest expense / avg. total assets
=(115,000+30,000)/(((600,000+60,000+900,000)+(560,000+40,000+700,000)/2)))
=10.1%
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