$200M earnings / 50M shares = $4 earnings/share

P/E = 20

P/4 = 20

P=80

The answer is c.

In 2008, XYZ Corporation had total earnings of $200 million and 50 million shares of the corporation’s stock were outstanding. If the price-earnings ratio for XYZ is 20, then what is the price of a share of its stock?

a)$5

b)$10

c)$80

d)$500