I am trying to find the accurate solution to this financial accounting problem with the correct explanation. Horizon Technologies Inc. has reported a net income of$1,050,000 for the year. The company's share price is $22.50,and the company has 420,000 shares outstanding.Compute the firm's price-earnings (PE) ratio.

The Price-Earnings (P/E) Ratio is calculated using the formula: P/E Ratio = Market Price per Share /…

Answered: Horizon Technologies Inc. has reported…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Horizon Technologies Inc. has reported a net income of $1,050,000 for the year. The company's share price is $22.50, and the company has 420,000 shares outstanding. Compute the firm's price-earnings (PE) ratio.