A Firm Has Net Income of $18,000 and a Book

question 100

Multiple Choice

A firm has net income of $18,000 and a book value per share of $2.10. The firm has 30,000 shares of stock outstanding and a price-earnings ratio of 15.9. What is the price-book ratio?

• A) 1.7
• B) 2.4
• C) 2.7
• D) 4.5
• E) 5.1

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