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Price-earnings ratio

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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?

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Solution Summary

The solution explains how to calculate the price-earnings ratio

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

EPS ...

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