Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

تمرين 56

Computing the Price-Earnings Ratio
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:


Refer to the information for Somerville Company on the previous page. Also, assume that the price per common share for Somerville is $8.10.
Required:
Compute the price-earnings ratio. ( Note : Round the answer to two decimal places.)