What is the price earnings ratio

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Reference no: EM133005130

Question - You are a newly employed finance manager for Finance Adventure Ltd. The following data is available for the company as of 31 June 2020:

Current assets of $293,950

Current liabilities $68,700

Total assets $765,600

Equity $305,890

Required -

a. The company's Management Board required you to evaluate two alternative options of debt funding and equity funding for a new project. What is the job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer)

b. Calculate non-current assets, non-current liabilities and build a balance sheet for the company?

c. Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?

d. What is the price earnings ratio (PE) of the company, given total number of outstanding ordinary shares is 57,000 and market price of each share is $22?

Reference no: EM133005130

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