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Johnson Enterprises has $12,400 in sales. The profit margin is 6 percent. There are 6,800 shares of stock outstanding. The market price per share is $2.50. What is the price-earnings ratio? A. 20.47 B. 22.85 C. 15.87 D. 18.52 E. 25.64

Johnson Enterprises has $12,400 in sales. The profit margin is 6 percent. There are 6,800 shares of stock outstanding. The market price per share is $2.50. What is the price-earnings ratio? A. 20.47 B. 22.85 C. 15.87 D. 18.52 E. 25.64

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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Johnson Enterprises has $12,400 in sales. The profit margin is 6 percent. There are 6,800 shares of stock outstanding. The market price per share is $2.50. What is the price-earnings ratio? A. 20.47 B. 22.85 C. 15.87 D. 18.52 E. 25.64
Transcribed Image Text:Johnson Enterprises has $12,400 in sales. The profit margin is 6 percent. There are 6,800 shares of stock outstanding. The market price per share is $2.50. What is the price-earnings ratio? A. 20.47 B. 22.85 C. 15.87 D. 18.52 E. 25.64
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