Homework Answers
Price-Earnings Ratio (P/E Ratio)
Price-Earnings Ratio (P/E Ratio) = Market Price of the Share / Earnings per share (EPS)
Earnings per share (EPS) = Net Income / Weighted average common shares outstanding
= $90,000 / 18,000 Shares
= $5.00 per share
Therefore, The Price-Earnings Ratio (P/E Ratio) = Market Price of the Share / Earnings per share (EPS)
= $88 per share / $5.00 per share
= 17.6 Times
“Therefore, The Gargantic Inc’s Price-Earnings Ratio (P/E Ratio) for 2018 = 17.6 Times”
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Help Save&Exit Su Gargantic Inc. had net income of $90,000 for 2018; its weighted-average common shares...
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3rd answer is 3.95 and 4th is 9.76
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3rd answer is 3.95 and 4th is 9.76
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