Market and book ratio-what is its p-e ratio

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1. A company has an EPS of $3.45, a book value per share of $37.26, and a market/book ratio of 1.8x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.

2. You have mutually exclusive projects and want to decide based on IRR If you require 14%, which one you need to choose with given information and why? Show your work. Project A costs $50,000 and returns $15,000 after-tax annually. Project B costs $35,000 and returns $11,000 after-tax annually. Both projects have a 5-year life.

Reference no: EM131929499

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