Question: Use the following information for MFB, Inc. for this problem. MSB Inc.Assets Current assetsCash11,560Accounts receivable9,200Inventory 15,500 Total36,260Fixed assetsNet plant and equipment50,164Total assets86,424 Liabilities and owners'

Use the following information for MFB, Inc. for this problem.

MSB Inc.AssetsCurrent assetsCash11,560Accounts receivable9,200Inventory15,500Total36,260Fixed assetsNet plant and equipment50,164Total assets86,424Liabilities and owners' equityCurrent liabilitiesAccounts payable7,000Notes payable5,600Total12,600Long-term debt20,000Owners' equityCommon stock and paid-in surplus31,500Accumulated retained earnings22,324Total53,824Total liabilities and owners' equity86,424Income statementSales72,000-Cost of goods sold26,200Gross Margin45,800-SG&A18,000-Depreciation3,600EBIT24,200-Interest paid2,000Taxable income22,200Taxes30%6,660Net income15,540Dividends40%6,216Retained earnings60%9,324Shares of stock outstanding14,000Market price per share28

What is the equity multiplier and price to earnings (PE) ratio?
A.1.668,29.32
B.1.703,42.70
C.1.635,37.27
D.1.688,32.99
E.1.606,25.23
F.1.595,27.99

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