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The Johnson Company reported earnings per share of common stock $4 in 2024 and paid dividends of $1.50 per share. The current market price per share is $60 and the book value per share is $35. What is the company's price-earnings ratio? Price-Earnings Ratio: Price-Earnings ratio is a financial ratio which is widely used by investors all over the world. It is used to judge whether a share is overpriced or under priced. P/E ratio of companies in same industry are compared with each other to make investment decisions.

The Johnson Company reported earnings per share of common stock $4 in 2024 and paid dividends of $1.50 per share. The current market price per share is $60 and the book value per share is $35. What is the company's price-earnings ratio? Price-Earnings Ratio: Price-Earnings ratio is a financial ratio which is widely used by investors all over the world. It is used to judge whether a share is overpriced or under priced. P/E ratio of companies in same industry are compared with each other to make investment decisions.

Managerial Accounting
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
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The Johnson Company reported earnings per share of common stock $4 in 2024 and paid dividends of $1.50 per share. The current market price per share is $60 and the book value per share is $35. What is the company's price-earnings ratio? Price-Earnings Ratio: Price-Earnings ratio is a financial ratio which is widely used by investors all over the world. It is used to judge whether a share is overpriced or under priced. P/E ratio of companies in same industry are compared with each other to make investment decisions.
Transcribed Image Text:The Johnson Company reported earnings per share of common stock $4 in 2024 and paid dividends of $1.50 per share. The current market price per share is $60 and the book value per share is $35. What is the company's price-earnings ratio? Price-Earnings Ratio: Price-Earnings ratio is a financial ratio which is widely used by investors all over the world. It is used to judge whether a share is overpriced or under priced. P/E ratio of companies in same industry are compared with each other to make investment decisions.
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