A company has the following financial metrics: ⚫ EPS = $2.25 ⚫ Book value per share = $22.80 ⚫ Market/Book ratio = 1.9x Calculate the company's P/E ratio.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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A company has the following financial metrics:
⚫ EPS = $2.25
⚫ Book value per share = $22.80
⚫ Market/Book ratio = 1.9x
Calculate the company's P/E ratio.
Transcribed Image Text:A company has the following financial metrics: ⚫ EPS = $2.25 ⚫ Book value per share = $22.80 ⚫ Market/Book ratio = 1.9x Calculate the company's P/E ratio.
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