Houston Enterprises recently disclosed the following financial information: •Earnings = $1,542,300 = Assets $8,200,000 • Liabilities = $1,532,450 ⚫Shares Outstanding = 412,675 Market Price = $32.50 per share Calculate the price-earnings ratio if liabilities increase to $3,200.

Houston Enterprises recently disclosed the following financial information: •Earnings = $1,542,300 = Assets $8,200,000 • Liabilities = $1,532,450 ⚫Shares Outstanding = 412,675 Market Price = $32.50 per share Calculate the price-earnings ratio if liabilities increase to $3,200.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

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Question

SUBJECT: FINANCIAL ACCOUNTING

Houston Enterprises recently disclosed the
following financial information:
•Earnings = $1,542,300
=
Assets $8,200,000
• Liabilities = $1,532,450
⚫Shares Outstanding = 412,675
Market Price = $32.50 per share
Calculate the price-earnings ratio if liabilities
increase to $3,200.

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