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

---

Definitions:

Wage And Salary Surveys

Studies of the wages and salaries paid by other organizations within the employer’s labor market.

Equal Pay For Work

Advocates for the principle that individuals should receive the same remuneration for the same work or work of equal value, irrespective of gender, ethnicity, or other unrelated factors.

Comparable Worth

The concept that jobs of equal value to an organization should receive equal pay, even if the jobs are different in nature.

Pay Equity

The principle or practice of ensuring that employees are compensated equally for work of equal value, regardless of gender, race, or other potentially discriminatory factors.