What is its P-E ratio

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1. A balloon payment of $ 21,000 on your house is due in 10 years. If you can earn an average of 5 percent per year for the 10- year period, how much must you place into an account today to have the $ 21,000 in 10 years?

2. You are scheduled to receive $30,000 in two years. When you receive it, you will invest it for 7 more years at 5.0 percent per year. How much will you have in 9 years?

3. A company has an EPS of $2.55, a book value per share of $23.46, and a market/book ratio of 2.4x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.

Reference no: EM132065750

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