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The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock

outstanding. The market price per share is $22. What is the price-earnings ratio? Answer 5.39 8.98 11.42 13.15 14.27

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8397307.xlsx

SOLUTION:
Earnings Per Share = (Profit Margin * Sales) / Number of shares
Earnings Per Share = (4.1% * $747,000) / 7,500 shares
Earnings Per Share $4.08 Price-Earnings Ratio = Market Price Per...

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