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

Step 1: Define Price-Earnings (P/E) RatioThe Price-Earnings (P/E) ratio is a valuation metric that…

Answered: A company has net income of $45,000,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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What is the firm's price earnings ratio?
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What is the firm's price earings ratio
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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.