Question
A large manufacturer of cement reported the below data for 2021: Sales 1,000,000 Operating cost 700,000 Interest payment 50,000 The company has 100,000 shares outstanding
A large manufacturer of cement reported the below data for 2021:
| Sales | 1,000,000 |
| Operating cost | 700,000 |
| Interest payment | 50,000 |
The company has 100,000 shares outstanding and are currently trading at $ 55 per share. Its competitor, who is similar in all other aspects, has a P/E ratio of 15. Please calculate the P/E ratio of the cement manufacturer and decide if you should buy its share or not (by comparing to the competitor's PE ratio).
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School Finance Elections
Authors: Don E. Lifto, Bradford J. Senden, Daniel A. Domenech
2nd Edition
1607091488, 978-1607091486
