A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 18.7

Big Guy Subs has net income of $150,980, a price-earnings ratio of 12.8, and earnings per share of $0.87. How many shares of stock are outstanding?    A.  13,558 B.  14,407 C.  165,523 D.  171,000 E.  173,540 Number of shares = $150,980/$0.87 = 173,540

67.

A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 18.7, and a book value per share of $7.92. What is the market-to-book ratio?    A.  1.87 B.  1.84 C.  2.23 D.  2.45 E.  2.57 Earnings per share = $126,400/160,000 = $0.79 Price per share = $0.79 × 18.7 = $14.773 Market-to-book ratio = $14.773/$7.92 = 1.87

68.

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?    A.  17.14 percent B.  18.63 percent C.  19.67 percent D.  21.69 percent E.  22.30 percent Return on equity = 12.5 percent × 1.49 = 18.63 percent, using the Du Pont Identity

69.

Taylor's Men's Wear has a debt-equity ratio of 42 percent, sales of $749,000, net income of $41,300, and total debt of $206,300. What is the return on equity?    A.  7.79 percent B.  8.41 percent C.  8.74 percent D.  9.09 percent E.  9.16 percent Return on equity = $41,300/($206,300/0.42) = 8.41 percent