I need help with the following questions
5-Price/earnings ratio A company has an EPS of $ 2.00, a cash flow per share of $ 3.00, and a price/ cash flow ratio of 8.0 . What is its P/ E ratio?
2- Debt ratio Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long- term debt and common equity. What is its debt ratio?
Equity Multiplier = Total Assets/Shareholders' Equity
Assets = Debt + Equity
Equity Multiplier = (Debt + Equity)/Equity
2.4Equity = Debt + Equity
Debt = 1.4Equity
Debt ratio = Total Debt/Total Assets
This solution is comprised of a detailed explanation to compute the debt ratio, equity multiplier, P/E ratio, and ROE.