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What is the Price to Earning Ratio

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Reference no: EM133205137

Assignment - Financial Accounting Questions

Each student is assigned a company listed in the Saudi Stock Exchange - Tadawul. Your job is to calculate the following ratiosbased on what you have learned in class. You will accomplish this by using data from your company's financial statements either from tadawul website or from the company's main website foryear 2019. For each ratio, you will have to answer questions associated with these ratios:

1. What is the Price to Earning (P/E) Ratio? If you know that the average banking industry P/E ratio for 2019 was 14.83, how do you feel about the stock as a financial analyst? Is it risky or not? Justify your answer.

2. What is the book value per share? If you compare the book value per share to the most recent market price (recent closing price), are you more or less confident in the stock? Would you buy the stock? Why or why not?

3. What is the stock's earning per share (EPS) ratio? If you know that the average banking industry EPS for 2019 was 2.44, how do you feel about the stock as a financial analyst?

4. Calculate the following ratios: current ratio, profit margin, operating margin, and ROA.

Reference no: EM133205137

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