Question
ABC Inc. and XYZ Inc. reported Net Incomes of $100,000 and $250,000 respectively for the most recent fiscal year. Both companies have 50,000 shares of
ABC Inc. and XYZ Inc. reported Net Incomes of $100,000 and $250,000 respectively for the most recent fiscal year.
Both companies have 50,000 shares of Common Stock issued and outstanding. The common stock was issued at $10 per share for each company. The market price per share of ABC's stock is $20 while XYZ's is $40 per share.
What is XYZ's P/E ratio?
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For Heintz/parrys College Accounting, Chapters 1-15, 22nd Edition, [instant Access]
Authors: James A. Heintz, Robert W. Parry
22nd Edition
1305669886, 9781305669888
