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:

Molecular Formula

A notation representing the number and type of atoms in a molecule without indicating how the atoms are bonded.

Line-Angle Structure

A simplified diagrammatic representation of chemical structures where the ends and bends of lines represent carbon atoms.

Condensed Formulas

A method of writing a formula for organic molecules in a linear form that shows the arrangement of atoms without displaying bonds.

Line-Angle Structure

A simplified way to draw organic molecules where lines represent bonds and the ends of lines or intersections represent carbon atoms.