Ronny Is Considering Investing in Markman,Inc

question 248

Multiple Choice

Ronny is considering investing in Markman,Inc.The current price of Markman is $40 a share,the after-tax earnings are $21,600,000,and there are 10,000,000 outstanding shares of common stock.What is Markman's price/earnings ratio?

• A)15.0
• B)18.5
• C)25.0
• D)28.5

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