Company A and B are competitors. Each company reported the following information: Net income company A: 280000

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Company A and B are competitors. Each company reported the following information:

Net income

company A: 280000

Company B: 325000

Average number of shares outstanding

Company A: 100,000

Company B: 125,000

stock price at the data of financial report

Company A: 14.49

Company B: 16.72

Which company has the higher Price Earnings ratio?

Related Book For answer-question

Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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Posted Date: Aug 16, 2023 01:01 AM

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Company A and B are competitors. Each company reported the following information: Net income company A: 280000

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To compare the PE ratios of companies A and B we need ... View the full answer

Financial Accounting

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