Rio Tinto has 10 million shares outstanding and has total earnings of $40 million. Each Rio share is $20. Calculate the PE ratio of Rio.

Question

Rio Tinto has 10 million shares outstanding and has total earnings of $40 million. Each Rio share is $20. Calculate the PE ratio of Rio.
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Solution 1

To calculate the Price to Earnings (PE) ratio of Rio, we need to follow these steps:

  1. Calculate Earnings Per Share (EPS): This is done by dividing the total earnings by the number of shares outstanding. In this case, it would be $40 million / 10 million shares = $4 per share.

  2. Calculate PE Rat Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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