Shown Below Are Selected Data from the Financial Statements of Noble

question 130

Multiple Choice

Shown below are selected data from the financial statements of Noble Computers. (Dollar amounts are in millions, except for the per share data.)
$$\begin{array} { | c | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 3,500 \\\hline \text { Cost of goods sold } & 1,890 \\\hline \text { Operating expenses } & 675 \\\hline \text { Profit } & \$ 115 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 540 \\\hline \text { Average total assets } & \$ 4,400 \\\hline\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share. At year end, the Wall Street Journal listed Noble's shares as trading at $81 per share.
-Refer to the above data. Noble's price/earnings ratio at year end was:

• A) .7.
• B) 13.5.
• C) 17.
• D) Some other amount.

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Definitions:

Developed World

Countries that have a high level of economic development, characterized by significant industrialization, infrastructure, and a high standard of living.

Global North

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Global South

denotes countries primarily situated in the Southern Hemisphere, often associated with lower economic development compared to the Global North.

Developing Countries

Nations with lower levels of industrialization, lower income per capita, and generally lower standards of living compared to more industrialized countries.