Sterling electronics has announced net earnings solve this accounting questions Sterling Electronics has announced net earnings of $4,250,000 forthis year. The company has 1,700,000 shares outstanding, and theyear-end stock price is $42.50. What are the company's earnings pershare and P/E ratio?

Step 1: Definitions of Key MetricsEarnings Per Share (EPS):EPS measures the amount of net earnings…

Answered: Sterling Electronics has announced net…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Sterling Electronics has announced net earnings of $4,250,000 for this year. The company has 1,700,000 shares outstanding, and the year-end stock price is $42.50. What are the company's earnings per share and P/E ratio?