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A firm has sales revenue and net income during the current year of $ 5 0 0 , 0 0 0 and $ 6 0

A firm has sales revenue and net income during the current year of $500,000 and $60,000, respectively. The total amount of stockholders equity was $600,000, and common shares outstanding were 120,000 all year.
If the market price of the stock is $10, what is the P/E ratio?
5
10
20
40

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