L.B. Jay has a 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? A. 18.72 B. 20.80 C. 19.11 D. 19.28 E. 22.90

L.B. Jay has a 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? A. 18.72 B. 20.80 C. 19.11 D. 19.28 E. 22.90

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

Need help

L.B. Jay has a 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?
A. 18.72
B. 20.80
C. 19.11
D. 19.28
E. 22.90

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