Answered: Carlton Industries reported a net…

Carlton Industries reported a net income of $920,000 for the year. The company's share price is $15.25, and it has 400,000 shares outstanding. Compute the firm's price-earnings (P/E) ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Question

Compute the firm's price earnings ratio on these financial accounting question

Carlton Industries reported a net income of $920,000
for the year. The company's share price is $15.25, and
it has 400,000 shares outstanding. Compute the
firm's price-earnings (P/E) ratio.

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