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Earnings per Share Market Value per Share Company 1 $10.00 $160.00 8.00 6.00 47.00 79.20 79.20 300.80 Compute the price-earnings ratio for each of these

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Earnings per Share Market Value per Share Company 1 $10.00 $160.00 8.00 6.00 47.00 79.20 79.20 300.80 Compute the price-earnings ratio for each of these four separate companies Price-Earnings Ratio Divided Choose Choose Denominator: Price-Earnings Ratio Company Numerator: Price-earnings ratio 2 4 Which stock might an analyst likely investigate as being potentially undervalued by the market? O Company 1 Company 2 Company 3 Company 4

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