Mountain Valley Foods, Inc. posted the following income statement: Income Statement Sales Cost of Goods Sold Depreciation Amount $600,000 $240,000 $70,000 Earnings Before Interest and Taxes (EBIT) $290,000 Interest Expense Net Profit Before Taxes Taxes (@ 35%) Net Income $40,000 $250,000 $87,500 $162,500 Mountain Valley Foods, Inc. has 150,000 shares of common stock outstanding, but no preferred stock. The current price of Mountain Valley's common stock is $20. What is the company's P/E ratio?

Mountain Valley Foods, Inc. posted the following income statement: Income Statement Sales Cost of Goods Sold Depreciation Amount $600,000 $240,000 $70,000 Earnings Before Interest and Taxes (EBIT) $290,000 Interest Expense Net Profit Before Taxes Taxes (@ 35%) Net Income $40,000 $250,000 $87,500 $162,500 Mountain Valley Foods, Inc. has 150,000 shares of common stock outstanding, but no preferred stock. The current price of Mountain Valley's common stock is $20. What is the company's P/E ratio?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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