Saturn Technologies has $8,500 in sales. The profit margin is 5 percent. There are 5,000 shares of stock outstanding. The market price per share is $2.10. What is the price-earnings ratio? A. 12 B. 15 C. 24.7 D. 35 E. 42
Saturn Technologies has $8,500 in sales. The profit margin is 5 percent. There are 5,000 shares of stock outstanding. The market price per share is $2.10. What is the price-earnings ratio? A. 12 B. 15 C. 24.7 D. 35 E. 42
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Saturn Technologies has $8,500 in sales. The profit margin is 5
percent. There are 5,000 shares of stock outstanding. The
market price per share is $2.10. What is the price-earnings
ratio?
A. 12
B. 15
C. 24.7
D. 35
E. 42
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