LB Jay Has Net Income of $38,000, Total Assets of $437,000

question 87

Multiple Choice

L.B. Jay has net income of $38,000, total assets of $437,000, total liabilities of $208,000, and a price-book ratio of 3.8. There are 60,000 shares of stock outstanding. What is the firm's price-earnings ratio?

• A)18.72
• B)19.11
• C)19.28
• D)20.80
• E)22.90

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Definitions:

System

An organized set of components or entities that are interrelated and work together to achieve a particular goal or set of goals.

Probability

A measure that quantifies the likelihood of a certain event or outcome to occur, expressed as a number between 0 and 1.

System

An organized set of interrelated components or elements that function together toward a common goal.

Average Time

The mean period taken for a task or process to occur; calculated by summing the total time taken and dividing it by the number of occurrences or instances.