PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20, and

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PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2×. What is its P/E ratio?

4-6 DuPONT AND ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?

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