Bernice Apparel Inc. has $950,000 in sales. The profit margin is 4.2%, and the firm has 8,200 shares of stock outstanding. The market price per share is $18. What is Bernice Apparel's price-earnings (P/E) ratio? a) 3.70 b) 4.10 c) 4.50 d) 4.75
Bernice Apparel Inc. has $950,000 in sales. The profit margin is 4.2%, and the firm has 8,200 shares of stock outstanding. The market price per share is $18. What is Bernice Apparel's price-earnings (P/E) ratio? a) 3.70 b) 4.10 c) 4.50 d) 4.75
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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Transcribed Image Text:Bernice Apparel Inc. has $950,000 in sales. The profit
margin is 4.2%, and the firm has 8,200 shares of stock
outstanding. The market price per share is $18.
What is Bernice Apparel's price-earnings (P/E) ratio?
a) 3.70
b) 4.10
c) 4.50
d) 4.75
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