The Financial Statements of Midwest Tours Are Given Below

question 41

Multiple Choice

The financial statements of Midwest Tours are given below. Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's P/E ratio for 2009 is

• A)20.53.
• B)6.63.
• C)5.21.
• D)5.00.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.

ROE

Return on Equity (ROE) is a financial ratio that measures a company's ability to generate profits from its shareholders' equity.

Dividend Growth Rate

The rate at which a company's dividend payments to shareholders increase over time.

Earnings

The amount of profit that a company produces during a specific period, which is often used to gauge the company's financial performance.