Jupiter Explorers has $10,200 in sales. The profit margin is 4 percent. There are 6,500 shares...

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Jupiter Explorers has $10,200 in sales. The profit margin is 4 percent. There are 6,500 shares of stock outstanding, with a p

Answer 1

Answer #1

Profit margin=Net income/Sales

Net income=10200*4%=$408

Earnings per share=Net income/Shares of stock outstanding

=408/6500=$0.0627692308

Price earnings ratio=Market price/Earnings per share

=2.1/0.0627692308

=33.46 times(Approx).

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Answer 2

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