Harken Corporation's price earnings ratio is 10 and its earnings in the current year is $5 per share but the earnings expected in the coming year is $8 per share. What is the anticipated price of Harken？
a. $80
b. $0.80
c. $50
d. $0.50
答案：A
Explanation
Choice “a” is correct. The price earnings ratio is 10, therefore, the price is equal to the price divided by earning anticipated for the coming year. The P/8 = 10, therefore, P = $80.
Choice “d” is incorrect. The proposed solution anticipates current earnings divided by price.
Choice “b” is incorrect. The proposed solution anticipates projected earnings divided by price.
Choice “c” is incorrect. The proposed solution anticipates price divided by current earnings.
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