Problem

Price-to-Earning Ratio. For the stocks described below, answer the following questions.a....

Price-to-Earning Ratio. For the stocks described below, answer the following questions.

a. How much were earnings per share?


b. Does the stock seem overpriced, underpriced, or about right, given that the historical P/E ratio is 12-14?

Costco closed at $48.30 per share with a P/E ratio of 17.25.

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