Register
Smolira Golf has 11,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $82. Required: What is the price-earnings ratio?
83.4k views
8 votes
Smolira Golf has 11,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $82.

Required:
What is the price-earnings ratio?

User Kikanye
by
4.1k points

1 Answer

3 votes

Answer:

25.23 times

Step-by-step explanation:

PE ratio = Price per share /Earnings per share

Price per share = $82

Earnings per share (EPS)= net income/ shares of common stock

Net Income = 35,753

EPS = 35753/11000 = 3.25

PE Ratio = 82/3.25 = 25.23 Times

User Jeremy Whitcher
by
3.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.5m questions

5.7m answers

Other Questions

Everyone has a unique spending plan. Which of the following factors has the greatest effect on a person's spending decisions?
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
If Morgan worked 15 hours last week and is paid $10 per hour the amount of money she makes before taxes and other expenses are taken out is called: A. Net revenue B Net pay C Gross revenue D Gross pay
Link Copied!