The Following Information Pertains to Soho Company What Is the Price-Earnings Ratio for Soho?
A) 6

question 41

Multiple Choice

The following information pertains to Soho Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Property, plant and equipment } & \$ 210,000 \\\text { Inventory } & 20,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Cash and short-term investments } & 40,000 \\\quad \text { Total Assets } & \$ 295,000\\\\\text { Equity and Liabilities }\\\text { Shareholders' equity\_ordinary } & \$ 150,000 \\\text { Non-current liabilities } & 85,000 \\\text { Current liabilities } & 60,000 \\\text { Total Equity and Liabilities } & \$ 295,000 \\\\\text { Income Statement }\\\text { Sales revenue } & \$ 85,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 40,000 \\\text { Operating expenses } & 20,000 \\\quad \text { Net income } & \$ 20,000 \\\\\text { Number of ordinary shares } & 6,000 \\\text { Market price of ordinary shares } & \$ 20 \\\text { Dividends per share } & .90\end{array}$ What is the price-earnings ratio for Soho?

• A) 6.0 times
• B) 2.5 times
• C) 8.0 times
• D) 4.0 times

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Definitions:

Posttranscriptional

Refers to the modifications and processes that RNA molecules undergo after transcription but before translation, such as splicing, editing, and transport.

Translational

Pertaining to the process of translating mRNA sequences into amino acid chains to form proteins.

Posttranslational

Referring to the modifications that occur to proteins after they have been synthesized by ribosomes, affecting their function and activity.

Regulation of Transcription

The process by which the synthesis of RNA from a DNA template is controlled, playing a key role in gene expression and cellular function.