Answer
1.49
Work Step by Step
Company’s annual earnings per share can be computed by dividing the yesterday closing price of a share with the PE ratio.
Compute the company’s annual earnings per share using the equation as shown below:
\[\begin{align}
& \text{Annual earnings per share}=\frac{\text{Yesterdays closing price per share}}{\text{PE ratio}} \\
& =\frac{\$61}{41}\\&=\$1.49\end{align}\]
