The Information for Montreal Design Inc

question 38

Multiple Choice

The information for Montreal Design Inc.(MD) is provided below.What is its P/E ratio?

• A)12x
• B)6.7x
• C)5.4x
• D)11.1x

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Definitions:

Gross Profit

This is the financial gain made after subtracting the cost of goods sold from the revenue generated from sales, before deducting any operational expenses.

Sales Revenue

The total income generated from the sale of goods or services before any costs or expenses are deducted.

Costs Of Goods Sold

An accounting term that denotes the direct costs attributable to the production of the goods sold by a company.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and a key financial analysis metric for businesses.