Punk's Coffee Shop has $750,000 in sales. The profit margin is 6 percent, and the firm has 5,000 shares of stock outstanding. The market price per share is $22.50. What is the price-earnings ratio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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Punk's Coffee Shop has $750,000 in
sales. The profit margin is 6
percent, and the firm has 5,000
shares of stock outstanding. The
market price per share is $22.50.
What is the price-earnings ratio?
Transcribed Image Text:Punk's Coffee Shop has $750,000 in sales. The profit margin is 6 percent, and the firm has 5,000 shares of stock outstanding. The market price per share is $22.50. What is the price-earnings ratio?
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