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?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
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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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