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 stockoutstanding. What is the firm's price-earningsratio?A. 18.72B. 20.80C. 19.11D. 19.28E. 22.90

Step 1: Calculate the Book Value per share Step 2: Calculate the Earnings per share(EPS) Step 3:…

Answered: L.B. Jay has a net income of $38,000,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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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