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21 November, 16:35

Jupiter explorers has $7,200 in sales. the profit margin is 4 percent. there are 6,000 shares of stock outstanding. the market price per share is $1.40. what is the price-earnings ratio?

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  1. 21 November, 16:55
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    Earnings = Sales * Profit margin = 7200 * 4% = 288

    Price to earnings = stock price / earnings per share = 1.40 / (288/6000) = $29.17
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