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LYDIA'S BAKERY HAS $920,000 IN SALES. THE PROFIT MARGIN IS 5 PERCENT, AND THE FIRM HAS 8,000 SHARES OF STOCK OUTSTANDING. THE MARKET PRICE PER SHARE IS $18.25. WHAT IS THE PRICE-EARNINGS RATIO?

LYDIA'S BAKERY HAS $920,000 IN SALES. THE PROFIT MARGIN IS 5 PERCENT, AND THE FIRM HAS 8,000 SHARES OF STOCK OUTSTANDING. THE MARKET PRICE PER SHARE IS $18.25. WHAT IS THE PRICE-EARNINGS RATIO?

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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LYDIA'S BAKERY HAS $920,000 IN SALES. THE PROFIT MARGIN IS 5 PERCENT, AND THE FIRM HAS 8,000 SHARES OF STOCK OUTSTANDING. THE MARKET PRICE PER SHARE IS $18.25. WHAT IS THE PRICE-EARNINGS RATIO?
Transcribed Image Text:LYDIA'S BAKERY HAS $920,000 IN SALES. THE PROFIT MARGIN IS 5 PERCENT, AND THE FIRM HAS 8,000 SHARES OF STOCK OUTSTANDING. THE MARKET PRICE PER SHARE IS $18.25. WHAT IS THE PRICE-EARNINGS RATIO?
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