Lassiter Industries Has Annual Sales of $328,000 with 8,000 Shares

question 62

Multiple Choice

Lassiter Industries has annual sales of $328,000 with 8,000 shares of stock outstanding. The firm has a profit margin of 4.5 percent and a price-sales ratio of 1.20. What is the firm's price-earnings ratio?

• A) 21.9
• B) 17.4
• C) 18.6
• D) 26.7
• E) 24.3

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Definitions:

Net Present Value

The disparity between the current value of cash inflows and cash outflows over a certain timeframe, utilized to assess an investment's profitability.

Accounting Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business, from an accounting perspective.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios).

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a specific dependent variable under a given set of assumptions.