What are reasonable values for the follow ratios for a company like Target? For example, would a price earnings ratio of 40 be too high & indicative of an error in calculation?

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Formula Net Income Profit Margin Ratio = Net Sales Net Income Return on Assets Ratio = Average Total Assets Net Income Return on Equity Ratio = Shareholder's Equity Net Income - Preferred Dividends Earnings Per Share = Weighted Average Common Shares Outstanding Market Value Price per Share Price Earnings Ratio = Earnings per Share Formula Net Income Profit Margin Ratio = Net Sales Net Income Return on Assets Ratio = Average Total Assets Net Income Return on Equity Ratio = Shareholder's Equity Net Income - Preferred Dividends Earnings Per Share = Weighted Average Common Shares Outstanding Market Value Price per Share Price Earnings Ratio = Earnings per Share

Answer rating: 100% (QA)

1 A Reasonable profit margin will vary from industry to industry 10 profit margin is considered ... View the full answer