Market Value Ratios Fancy Paws' Year-End Price on Its Common

question 8

Multiple Choice

Market Value Ratios Fancy Paws' year-end price on its common stock is $20. The firm has a profit margin of 12%, total assets of $20 million, a total asset turnover ratio of 0.5, no preferred stock, and there are 2 million shares of common stock outstanding. What is the PE ratio for Fancy Paws?

• A) 3.33
• B) 8.33
• C) 10.00
• D) 33.33

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Definitions:

Ownership Interest

This denotes the rights and claims an individual or entity has over a property or investment.

Real Property

Land, and generally whatever is erected or growing upon or affixed to land, including buildings and crops.

Apartment House

A residential building containing multiple apartment units owned by an individual or company, often rented to tenants.

Leases Expire

The conclusion of a lease agreement's term, after which the tenant must either vacate the property or negotiate a renewal of the lease.