Baxter & Baxter Has Total Assets of $710,000

question 83

Multiple Choice

Baxter & Baxter has total assets of $710,000.There are 45,000 shares of stock outstanding with a market value of $28 a share.The firm has a profit margin of 7.1 percent and a total asset turnover of 1.29.What is the price-earnings ratio?

• A)16.38
• B)17.99
• C)19.38
• D)20.12
• E)22.41

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