Book Value And P/e Ratio Help Needed?

Determination of profitability Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share.
Sales $600,000
Shares outstanding 100,000
Cost of goods sold 200,000
Interest expense 30,000
Selling and administrative expense 40,000
Depreciation expense 20,000
Preferred stock dividends 80,000
Taxes 100,000
Sales $ 600,000
— Cost of goods sold- 200,000
Gross profit 400,000
— Selling and administrative expense——————————- 40,000
— Depreciation expense———————————… 20,000
Operating profit———————————-… 340,000
— Interest expense- 30,000
Earnings before taxes- 310,000
— Taxes- 100,000
Earnings after taxes———————————–… 210,000
— Preferred stock dividends——————————-… 80,000
Earnings available to common stockholders———————- 130,000
Shares outstanding 100,000
Earnings per share- 1.30
Book value and P/E ratio In problem 7, if the firm sells at 2.5 times earnings per share, what will the P/E ratio be? Round to the nearest whole number.
I have gotten a number of different answers… the last one being 2.50 and I don’t think that is right. any help would be welcome./

Both comments and pings are currently closed.

Comments are closed.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews