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A firm has PVGO of 0 and a market capitalization rate of 18.0%. What is the firm's P/E ratio?

Sagot :

The firm's P/E ratio is 5.56

What is P/E ratio of the firm?

The price-earnings ratio of the company compares the company's per share to the earnings per share to determine the  market value that investors places on the firm's earnings in a bid to price share of the company.

The price-earnings ratio is determined by divided the company's share price by the earnings per share, however, in this case, none of the two variables are available, hence, the P/E ratio is 1 divided by the capitalization

P/E ratio=1/18.0%

P/E ratio=5.56

Find out more about P/E ratio on:https://brainly.com/question/14266928

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