What is the price-earnings ratio

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Reference no: EM131595524

Question - Markus Company's common stock sold for $5.00 per share at the end of this year. The company paid a common stock dividend of $0.80 per share this year. It also provided the following data excerpts from this year's financial statements:


Ending
Balance

Beginning
Balance

Cash

$45,000

$42,000

Accounts receivable

$90,000

$65,000

Inventory

$72,100

$90,000

Current assets

$207,100

$197,000

Total assets

$766,000

$836,400

Current liabilities

$88,000

$82,500

Total liabilities

$196,000

$176,400

Common stock, $1 par value

$159,000

$159,000

Total stockholders' equity

$570,000

$660,000

Total liabilities and stockholders' equity

$766,000

$836,400

 


This Year

Sales (all on account)

$1,045,000

Cost of goods sold

$606100

Gross margin

$438,900

Net operating income

$300,000

Interest expense

$15,000

Net income

$199,500

Required - What is the price-earnings ratio?

Reference no: EM131595524

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