If the same company's stock price fell to $2 per share while its EPS fell to $0.25, the P/E would fall to ____.
It's important to note that a lower P/E can also be a sign of trouble. If the same company's stock price fell to $2 per share while its EPS fell to $0.25, the P/E would fall to 8 = ($2/0.25).
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