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A technology company reports annual net income of $32 million. They have 20 million shares outstanding, and the current market price is $68.40 per share. What is the company's price-to-earnings ratio? a. 0.47 b. 42.75 c. 3.42 d. 21.38

A technology company reports annual net income of $32 million. They have 20 million shares outstanding, and the current market price is $68.40 per share. What is the company's price-to-earnings ratio? a. 0.47 b. 42.75 c. 3.42 d. 21.38

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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A technology company reports annual net income of $32 million. They have 20 million shares outstanding, and the current market price is $68.40 per share. What is the company's price-to-earnings ratio? a. 0.47 b. 42.75 c. 3.42 d. 21.38
Transcribed Image Text:A technology company reports annual net income of $32 million. They have 20 million shares outstanding, and the current market price is $68.40 per share. What is the company's price-to-earnings ratio? a. 0.47 b. 42.75 c. 3.42 d. 21.38
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