Jay has net income solution this accounting question Jay has net income of $38,000, total assets of $437,000,total liabilities of $208,000, and a price-book ratio of3.8. There are 60,000 shares of stock outstanding.What is the firm's price-earnings ratio?

Step 1: Define Price-Earnings RatioIn the price-earnings ratio, the price refers to the market price…

Answered: Jay has net income of $38,000, total…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

See similar textbooks

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
A firm has $160,000 shares of stock outstanding sales of $1.94 million , net income of $126,400 a price earnings ratio of 21.3 and a book value per share of $7.92. What is the market to book ratio?
Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per share×total shares outstanding) is $750,800. The firm's earnings per share are $3.24, which produces a price-earnings ratio of 12.32. If there are 49,000 shares of common stock outstanding, what is the firm's market-to-book ratio (i.e., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?
Follow the Instruction
Hungry Lunch has net income of $68,710, a price-earnings ratio of 13.7, and earnings per share of $.24. How many shares of stock are outstanding?
A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio?
A company has a net income of $865,000; it's weighted average common shares....
You are given the following information: Stockholders' equity - $359 million; price/earnings = ratio 45; shares outstanding = 8,600,000; and market/book ratio = 5.45. Calculate the market price of a share of the company's stock. a. $41.74. b. $227.51. c. $185.76. d. $243.97. e. $38.48.
Need help
Calculate The Market Price with General Accounting method
What is the amount of the shareholders' equity?
General accounting

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Jay has net income of $38,000, total assets of $437,000, total liabilities of $208,000, and a price-book ratio of 3.8. There are 60,000 shares of stock outstanding. What is the firm's price-earnings ratio?