The Uptowner has $956,400 in sales.The profit margin is 4.75 percent.There are 25,000 shares of stock outstanding with a market price per share of $32.40.What is the price-earnings ratio?

Name: The Uptowner has $956,400 in sales.The profit margin is 4.75 percent.There are 25,000 shares of stock outstanding with a market price per share of $32.40.What is the price-earnings ratio?
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Quizplus · Accepted Answer

Earnings per share = (.0475 × $956,400)/25,000 = $1.82Price-earnings ratio = $32.40/$1.82 = 17.83

The Uptowner Has $956,400 in Sales