Answered: Compute the price earnings (P/E) ratio…

Compute the price earnings (P/E) ratio given the following. Earnings per share: $1.70 Cash flow per share: $2.50 Price/cash flow ratio: 7.0 times

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...

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Question

Compute the price earnings ratio given the following.

Compute the price earnings (P/E) ratio given the following.
Earnings per share: $1.70
Cash flow per share: $2.50
Price/cash flow ratio: 7.0 times

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