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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
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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
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