A firm's current market value of equity is $60 million. It has 2 million shares outstanding. The firm's equity multiplier is one, and it had sales of $96 million last year. Its profit margin was 7.5%. What is the firm's implied 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 firm's current market value of equity is $60 million. It has 2 million shares outstanding. The firm's equity multiplier is one, and it had sales of $96 million last year. Its profit margin was 7.5%. What is the firm's implied price-earnings ratio?

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