What is the company price-earnings ratio

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Question - As a stockholder of McDonald's, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, an 750,000 outstanding shares of common stock.

Calculate the earnings per share of McDonald's common stock.

Calculate the book value of a share of McDonald's common stock.

Assuming a share of McDonald's common stock has a market value of $40, what is the company's price-earnings ratio?

Reference no: EM133178813

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