Calculate the price-earnings ratio

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Question: Data for Virtual Gaming Systems is provided in P12-4A. Earnings per share for the year ended December 31, 2012, are $1.30. The closing stock price on December 31, 2012, is $27.30.

Required: Calculate the following profitability ratios for 2012.

1. Gross profit ratio.

2. Return on assets.

3. Profit margin.

4. Asset turnover.

5. Return on equity.

6. Price-earnings ratio.

Reference no: EM131522606

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