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Starbucks currently has a market price of $ 2 2 . 1 5 per common share and a P / E ratio of 4 3

Starbucks currently has a market price of $22.15 per common share and a P/E ratio of 43. Diedrich Coffee, a competitor to Starbucks, has a market price of #3.84 per share and a P/E ratio of 6.
a. Calculate the earning of both companies
b. Compare the earnings growth prospects of the two companies
A. a. Starbucks $0.64; Diedrich $0.52
b. The market apparently does not see the future earnings growth for Diedrich as for Starbucks.
B. a. Starbucks $0.52; Diedrich $0.64
b. The market apparently does not see the future earnings growth for Starbucks as for Diedrich.
C. a. Starbucks $0.52; Diedrich $0.64
b. The market apparently does not see the future earnings growth for Diedrich as for Starbucks.
D. a. Starbucks $0.64; Diedrich $0.52
The market apparently does not see the future earnings growth for Starbucks as for Diedrich.
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