Jupiter Explorers has $6,400 in sales. The profit margin is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is $1.20. What is the price-earnings ratio? A. 13 B. 14 C. 21 D. 30 E. 48
Jupiter Explorers has $6,400 in sales. The profit margin is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is $1.20. What is the price-earnings ratio? A. 13 B. 14 C. 21 D. 30 E. 48
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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Question
What is the price earning ratio?

Transcribed Image Text:Jupiter Explorers has $6,400 in sales. The profit margin is 4 percent.
There are 6,400 shares of stock outstanding. The market price per
share is $1.20. What is the price-earnings ratio?
A. 13
B. 14
C. 21
D. 30
E. 48
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