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Tasya [4]
3 years ago
7

A company has net income of $885,000; its weighted-average common shares outstanding are 177,000. Its dividend per share is $1.1

0, its market price per share is $101, and its book value per share is $95.50. Its price-earnings ratio equals:
Business
1 answer:
Vika [28.1K]3 years ago
8 0

Answer:

20.2 or 20.2:1

Explanation:

EPS =  Net Income / common shares outstanding

EPS = $885,000 / 177,000 shares

EPS = $5

Market price per share = $101

Price-earnings ratio = Market price per share / EPS

Price-earnings ratio = $101 / $5

Price-earnings ratio = 20.2 or 20.2:1

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