A company has $6 billion of net income, $2 billion of depreciationand amortization, $80 billion of common equity, and 1 billionshares of stock. If its stock price is $96 per share, what is its price/earnings ratio? (16) Its price/cash flow ratio? (12) Its market/bookratio? (1.2)
A company has $6 billion of net income, $2 billion of depreciationand amortization, $80 billion of common equity, and 1 billionshares of stock. If its stock price is $96 per share, what is its price/earnings ratio? (16) Its price/cash flow ratio? (12) Its market/bookratio? (1.2)
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1STP
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Question
A company has $6 billion of net income, $2 billion of depreciation
and amortization, $80 billion of common equity, and 1 billion
shares of stock. If its stock price is $96 per share, what is its price/
earnings ratio? (16) Its price/cash flow ratio? (12) Its market/book
ratio? (1.2)
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