Ask Question
17 December, 12:22

Jupiter explorers have $8,200 in sales. the profit margin is 5 percent. there are 5,200 shares of stock outstanding. the market price per share is $1.70. what is the price-earnings ratio

+2
Answers (1)
  1. 17 December, 13:47
    0
    Price per earnings ratio is calculated as Price of each share in the market/Earnings made on each share over the last 4 quarters. (P/E) P = $ 1.70 Earnings per share = Net income/Outstanding shares Net income = Revenue - Costs = profit margin = 5%*8200 = $410 Therefore Earning per share = 410/5200 = $0.078 P/E ratio = 1.7/0.078 = 21.5
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jupiter explorers have $8,200 in sales. the profit margin is 5 percent. there are 5,200 shares of stock outstanding. the market price per ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers