During the current year, Zenith Corp. generated $250,000 of net income from $4,000,000 of revenue.  Zenith's stock price is $80 per share, with 20,000 shares of stock outstanding, and a book value of equity equal to $1,500,000.  Compute Zenith's Price/Earnings ratio.   Question 50 options:   16.0       6.4   31.3   2.5

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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During the current year, Zenith Corp. generated $250,000 of net income from $4,000,000 of revenue.  Zenith's stock price is $80 per share, with 20,000 shares of stock outstanding, and a book value of equity equal to $1,500,000.  Compute Zenith's Price/Earnings ratio.

 

Question 50 options:

 

16.0

 

 

 

6.4

 

31.3

 

2.5

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