Lab R Doors' Year-End Price on Its Common Stock Is

question 139

Multiple Choice

Lab R Doors' year-end price on its common stock is $40. The firm has a profit margin of 10 percent, total assets of $30 million, a total asset turnover ratio of 2, no preferred stock, and there are 4 million shares of common stock outstanding. What is the PE ratio for Lab R Doors?

• A) 0.375
• B) 0.750
• C) 6.667
• D) 26.667

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Definitions:

Management

The process of dealing with or controlling things or people, often within an organizational context.

Limited Liability Company

A blend of organizational structures that offers the tax efficiencies of a partnership or sole proprietorship alongside the minimized personal financial risk characteristic of a corporation.

Business Organization

A legal entity formed to conduct business, such as a corporation, partnership, or sole proprietorship.

Wyoming

A state in the western United States known for its wide-open spaces, mountains, and national parks.