A firm has annual sales of $300,000, a price-earnings ratio of 24, and a profit margin of

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A firm has annual sales of $300,000, a price-earnings ratio of 24, and a profit margin of 4 percent. Profit margin is net income divided by sales. There are 15,000 shares of stock outstanding.

a) What is the earning per share?

b) What is the Price-sales ratio?

Related Book For answer-question

Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Posted Date: Apr 11, 2023 02:25 AM

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A firm has annual sales of $300,000, a price-earnings ratio of 24, and a profit margin of

Question:

Expert Answer:

a The profit margin is net income divided by sales so we can calculate the net income as Net in... View the full answer

Managerial Economics

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