A company has net income of $45,000, total assets of $525,000, total liabilities of $285,000, and a price-book ratio of 2.5. The company has 50,000 shares outstanding. Calculate the firm's price-earnings ratio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
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A company has net income of $45,000, total assets of $525,000, total
liabilities of $285,000, and a price-book ratio of 2.5. The company
has 50,000 shares outstanding. Calculate the firm's price-earnings
ratio.
Transcribed Image Text:A company has net income of $45,000, total assets of $525,000, total liabilities of $285,000, and a price-book ratio of 2.5. The company has 50,000 shares outstanding. Calculate the firm's price-earnings ratio.
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