Answered: Solar One Inc. reports net income of…

Solar One Inc. reports net income of $18 million and has 36 million shares outstanding. The current share price is $45.20. What is the Price-to-Earnings (P/E) ratio? a. 8.5 b. 72.1 c. 56.8 d. 90.4

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Question

Could you help me solve this financial accounting question using appropriate calculation techniques?

Solar One Inc. reports net income of $18 million and has 36
million shares outstanding. The current share price is $45.20.
What is the Price-to-Earnings (P/E) ratio?
a. 8.5
b. 72.1
c. 56.8
d. 90.4

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