Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.76. During the year Ducat had sales for $240150 that include a 30% mark up. Assume a 365 day year. Required 1: If both earnings per share and share price double next year, by how much will the P/E ratio change? Required 2: If the market price of each outstanding common share is $100, determine the Net Income of the period. $ Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):
Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.76. During the year Ducat had sales for $240150 that include a 30% mark up. Assume a 365 day year. Required 1: If both earnings per share and share price double next year, by how much will the P/E ratio change? Required 2: If the market price of each outstanding common share is $100, determine the Net Income of the period. $ Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio
of $10.76.
During the year Ducat had sales for $240150 that include a 30% mark up.
Assume a 365 day year.
Required 1: If both earnings per share and share price double next year, by
how much will the P/E ratio change?
Required 2: If the market price of each outstanding common share is $100,
determine the Net Income of the period. $
Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to
represent it as a percentage):
Required 4: If the market price f each outstanding common share is $100,
Ducat's Return on Sales is (report it as multiplied by 100 to represent it as a
percentage):
Required 5: If the market price of each outstanding common share is $100,
determine the Earnings Per Share. $
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