Question
Income Statement Sales revenue $90,000 Cost of goods sold 45,000 Gross margin 45,000 Operating expenses 20,000 Net income $25,000 Number of shares of common stock
Income Statement
| Sales revenue | $90,000 |
| Cost of goods sold | 45,000 |
| Gross margin | 45,000 |
| Operating expenses | 20,000 |
| Net income | $25,000 |
| Number of shares of common stock | 10,000 |
| Market price of common stock | $40,000 |
| Dividends per share on common stock | $0.50 |
| Cash provided by operations per share | $4.000 |
What is the price earnings (PE) ratio for this company?
-
16 times
-
20 times
-
10 times
-
8 times
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Activity Accounting An Activity-Based Costing Approach
Authors: James A. Brimson
1st Edition
0471196282, 978-0471196280
