What is the price earnings ratio for this company? Round your answer to one decimal point. Assets: Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total assets $295,000 Liabilities and Stockholders' Equity Current liabilities 60,000 Long-term liabilities 85,000 Stockholders' equity-common 150,000 Total liabilities and stockholders' equity $295,000 Income Statement Net sales $ 85,000Cost of goods sold 45,000Gross margin 40,000Operating expenses 15,000Interest expense 5,000Net income $ 20,000 Number of shares of common stock 6,000Market price of common stock $20Total dividends paid $5,400Cash provided by operations $30,000 8.0 times 2.5 times 4.0 times 6.0 times
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What is the price earnings ratio for this company? Round your answer to one decimal point.
Assets:
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total assets $295,000Liabilities and
Stockholders' Equity
Current liabilities 60,000
Long-term liabilities 85,000
Stockholders' equity-common 150,000
Total liabilities and stockholders' equity $295,000
Income Statement
Net sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 15,000
Interest expense 5,000
Net income $ 20,000Number of shares of common stock 6,000
Market price of common stock $20
Total dividends paid $5,400
Cash provided by operations $30,0008.0 times
2.5 times
4.0 times
6.0 times
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