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What is the price-earnings ratio

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Reference no: EM131810155

Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year's financial statements

Cash $ 35,000    $ 30,000  
  Accounts receivable $ 60,000    $ 50,000  
  Inventory $ 55,000    $ 60,000  
  Current assets $ 150,000    $ 140,000  
  Total assets $ 450,000    $ 460,000  
  Current liabilities $ 60,000    $ 40,000  
  Total liabilities $ 130,000    $ 120,000  
  Common stock, $1 par value $ 120,000    $ 120,000  
  Total stockholders' equity $ 320,000    $ 340,000  
  Total liabilities and stockholders' equity $ 450,000    $ 460,000  

  This Year  
  Sales (all on account) $ 700,000   
  Cost of goods sold $ 400,000   
  Gross margin $ 300,000   
  Net operating income $ 140,000   
  Interest expense $ 8,000   
  Net income $ 92,400   

What is the price-earnings ratio?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131810155

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