Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price...

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Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price per share of $12.98. The price to

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Answer 1

Answer #1

Step-1, The Earnings per share (EPS)

Earnings per share (EPS) = Net Income / Number of shares outstanding

= $134,502 / 136,088 Shares

= $0.9883 per share

Step-2, The Price-Earnings (P/E) ratio

Price-Earnings (P/E) ratio = Current market price per share / Earnings per share

= $12.98 per share / $0.9883 per share

= 13.13 Times

“Hence, the firm’s Price-Earnings (P/E) ratio will be 13.13 Times”

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Answer 2

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Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price...

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6) A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of...

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Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price...

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