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Problem 4 (Price/Earnings Ratio) A company has an EPS of P2.00, a book value per share of P20, and a market/book ratio of 1.2 x. What is its P/E ratio? Problem 5 (DuPont and ROE) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are P100 million, and it has total assets of P50 million. What is its ROE?

Problem 4 (Price/Earnings Ratio) A company has an EPS of P2.00, a book value per share of P20, and a market/book ratio of 1.2 x. What is its P/E ratio? Problem 5 (DuPont and ROE) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are P100 million, and it has total assets of P50 million. What is its ROE?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help me answer problem 4 and 5
Problem 4 (Price/Earnings Ratio) A company has an EPS of P2.00, a book value per share of P20, and a market/book ratio of 1.2 x. What is its P/E ratio? Problem 5 (DuPont and ROE) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are P100 million, and it has total assets of P50 million. What is its ROE?
Transcribed Image Text:Problem 4 (Price/Earnings Ratio) A company has an EPS of P2.00, a book value per share of P20, and a market/book ratio of 1.2 x. What is its P/E ratio? Problem 5 (DuPont and ROE) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are P100 million, and it has total assets of P50 million. What is its ROE?
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