What is the price earnings ratio on these financial accounting question? Sumo Enterprises Inc. reported a net income of $920,000 for the currentyear. The year-end market price per common share was $14. There were460,000 weighted-average shares of common stock outstanding. Question:Calculate Sumo Enterprises Inc.'s price-earnings (P/E) ratio.

The Price-Earnings (P/E) ratio is calculated using the formula: P/E Ratio = Market Price per Share /…

Answered: Sumo Enterprises Inc. reported a net…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 21E

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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Sumo Enterprises Inc. reported a net income of $920,000 for the current year. The year-end market price per common share was $14. There were 460,000 weighted-average shares of common stock outstanding. Question: Calculate Sumo Enterprises Inc.'s price-earnings (P/E) ratio.