The company's price to earnings ratio, given the market price and the earnings per share, is 19. 50 times.
The link between a company's stock price and earnings per share is known as the price-earnings ratio (P/E Ratio) (EPS). It is a well-liked ratio that helps investors understand the worth of the organization.
The price you must pay per unit of current earnings is shown by the P/E ratio, which also displays market expectations (or future earnings, as the case may be).
A high P/E ratio may indicate that a company's stock is overpriced or that investors anticipate rapid future growth rates.
The price to earnings ratio can be found by the formula :
= Market price of shares / Earnings per share
= 39 / 2
= 19.50 times
Find out more on price to earnings ratio at https://brainly.com/question/18484440
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