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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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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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