Homework Help is Here – Start Your Trial Now!
Business
Accounting
Bright Horizons Inc. has $1,200,000 in sales. The profit margin is 5.5%, and the firm has 10,000 shares of stock outstanding. The market price per share is $20.00. What is the price-earnings (P/E) ratio? A) 3.63 B) 3.85 C) 4.02 D) 3.03 E) 4.70

Bright Horizons Inc. has $1,200,000 in sales. The profit margin is 5.5%, and the firm has 10,000 shares of stock outstanding. The market price per share is $20.00. What is the price-earnings (P/E) ratio? A) 3.63 B) 3.85 C) 4.02 D) 3.03 E) 4.70

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
See similar textbooks
icon
Related questions
Question
100%

What is the price earnings ratio on these financial accounting question?

Bright Horizons Inc. has $1,200,000 in sales. The profit margin is 5.5%, and the firm has 10,000 shares of stock outstanding. The market price per share is $20.00. What is the price-earnings (P/E) ratio? A) 3.63 B) 3.85 C) 4.02 D) 3.03 E) 4.70
Transcribed Image Text:Bright Horizons Inc. has $1,200,000 in sales. The profit margin is 5.5%, and the firm has 10,000 shares of stock outstanding. The market price per share is $20.00. What is the price-earnings (P/E) ratio? A) 3.63 B) 3.85 C) 4.02 D) 3.03 E) 4.70
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS