Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.46. During the year Ducat had sales for $239400 that include a 30% mark up. Assume a 365 day year.

Required 1: If both earnings per share and share price double next year, by how much will the P/E ratio change?

Required 2: If the market price of each outstanding common share is $100, determine the Net Income of the period. $

Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

Required 4: If the market price of each outstanding common share is $100, Ducat's Return on Sales is (report it as multiplied by 100 to represent it as a percentage):

Required 5: If the market price of each outstanding common share is $100, determine the Earnings Per Share. $

Answer rating: 100% (QA)

Required 1 PE ratio can be calculated as Price per share Earnings per share If both earnings per sha... View the full answer