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.
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.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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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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