Explore BrainMass

Price-earnings ratio

Trying to find the price-earnings ratio for the following. Thanks!

JE, Inc has $6,400 in sales. The profit margin is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is $1.20. What is the price-earnings ratio?

Solution Preview

Price to Earnings Ratio = Market Price/Earnings Per Share (EPS)

EPS ...

Solution Summary

The solution explains how to calculate the price-earnings ratio