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Square D's Has $42,700 in Sales and a Profit Margin

question 15

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Square D's has $42,700 in sales and a profit margin of 7.2 %. There are 5,700 shares of stock outstanding at a market price per share of $13.20. What is the price-earnings ratio?

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Definitions:

Economic Profit

The surplus remaining after deducting total costs from total revenues, including both explicit and implicit costs, and representing a measure of economic efficiency.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain on its income statement.

Economic Cost

The total cost of choosing one action over another, including both the costs incurred and the opportunity costs of forgone alternatives.

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