Ratios:

Current Ratio: 3.6093

Quick Ratio: 2.1799

Times Interest Earned: 9.9143

ROE 16.48%

ROA 12.01%

Equity Multiplier 1.3714

Inventory Turnover 1.3489

The P/E (Price/Earnings) Ratio is defined as: P/E ratio = Price per Common Share / Net Income per Common Share.

Which of the following statements are true with respect to the P/E Ratio?

Select one:

a. A P/E Ratio of 15 would tell us that each Common Stock is selling for 15 times the Net Income per common share

b. If you were an investor buying a Common Stock, you would hope that the P/E Ratio would go down after you purchased the shares.

c. If the firms Net Income per Common Share remained the same but the P/E Ratio went down, the firms stock price per Common Share would go up

d. All of the above statements are true

e. None of the above statements are true.