Correct Answer: Option B

Explanation

Price-earnings ratio, also known as P/E ratio, is a tool that is used by investors to help decide whether they should buy a stock. Essentially, the P/E ratio tells potential investors how much they have to pay for every $1 of earnings. A low P/E ratio is attractive in the sense that one pays less for every $1 of earnings. At the same time, companies with higher P/E ratios generally expect higher earnings growth in the future than companies with low P/Es. it is gotten as:

Price earnings ratio = market value ÷ Earnings per share (EPS)

= \(\frac{1.5}{47K}\)

= 3.19

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