aken from the LONDON Company: Sales 1,500 Preferred stock101 revenue Preferred 12 Interest 40 stock expense dividends 30% sales returns 1,000 and allowances Гах rate utilities 80 Common $180 expenses stock, $5 par sales 50 Total 1,700 discounts stockholders' equity supplies 100 market price $50 expenses nstruction I.What is Price-earnings ratio? 2. explain the result.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information have been
taken from the LONDON Company:
Sales
1,500Preferred stock101
revenue
Preferred
stock
dividends
12
Interest
40
expense
30% sales returns 1,000
and allowances
Tax
rate
utilities
80
Common
$180
expenses
stock, $5 par
sales
discounts
50
Total
stockholders'
equity
1,700
supplies
100 market price
$50
expenses
Instruction
1.What is Price-earnings ratio?
2. explain the result.
Transcribed Image Text:The following information have been taken from the LONDON Company: Sales 1,500Preferred stock101 revenue Preferred stock dividends 12 Interest 40 expense 30% sales returns 1,000 and allowances Tax rate utilities 80 Common $180 expenses stock, $5 par sales discounts 50 Total stockholders' equity 1,700 supplies 100 market price $50 expenses Instruction 1.What is Price-earnings ratio? 2. explain the result.
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