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Darya [45]
4 years ago
7

Jupiter Explorers has $9,200 in sales. The profit margin is 3 percent. There are 4,400 shares of stock outstanding, with a price

of $1.50 per share. What is the company's price–earnings ratio?
Business
1 answer:
Drupady [299]4 years ago
8 0

Answer:

Price-earning ratio=23.9234

Explanation:

First we will calculate the earning per share:

Earning Per share=(Sales*Profit Margin)/Total shares

Sales=$9,200

Profit Margin=3%=0.03

Total Shares of Stock=4,400

Earning Per share=($9,200*0.03)/4400

Earning Per share=$0.0627

Price\ -\ Earning\ Ratio=\frac{Market\ Price}{Earning\ Per\ share}

Market Price per share=$1.50

Price-earning ratio=\frac{\$1.50}{\$0.0627}

Price-earning ratio=23.9234

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