If a Firm Has Sales of $100,total Expenses (Including Interest

question 3

Multiple Choice

If a firm has sales of $100,total expenses (including interest and taxes) of $50,has a stock that is selling at $50 per share and has 10 share of stock outstanding,then the firm has a P/E ratio of:

• A)2.00
• B)1.00
• C)10.0
• D)0.20