David's company has $1,200,000 in sales. The profit margin is 5.2 percent, and the firm has 10,000 shares of stock outstanding. The market price per share is $20. What is the price-earnings ratio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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David's company has $1,200,000 in sales. The profit
margin is 5.2 percent, and the firm has 10,000 shares of
stock outstanding. The market price per share is $20.
What is the price-earnings ratio?
Transcribed Image Text:David's company has $1,200,000 in sales. The profit margin is 5.2 percent, and the firm has 10,000 shares of stock outstanding. The market price per share is $20. What is the price-earnings ratio?
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