ABC Corp. had $30,000,000 in revenues (sales), $10,000,000 in Costs of Goods Sold (COGS), $3,500,000 in...

ABC Corp. had $30,000,000 in revenues (sales), $10,000,000 in Costs of Goods Sold (COGS), $3,500,000 in SG&A expenses, $5,400,000 in depreciation expenses, $3,000,000 in interest expenses, and $1,745,000 in tax expenses. ABC Corp.'s shares are currently traded at $25.52, and the company currently has 1,500,000 shares outstanding. What is the company's earnings per share (EPS)? What is the company's price-earnings ratio?

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Expert Solution

We see that the EPS=(30-10-3.5-5.4-3-1.745)/1.5=4.24

Price Earnings Ratio=25.52/4.24=6.02

jeff jeffy answered 2 years ago

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