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What is the price-sales ratio if the market price is $43.20 per share? (use end-of-year values)

Sagot :

The price-sales ratio if the market price is $43.20 per share is: 4.28.

Price-sales ratio

Using this formula

Price-sales ratio=Market price per share/[Net sales/ (Ending Common stock ($1 par value)]

Let plug in the formula

Price-sales ratio = $43.20 / [$827,500 / ($82,000 / $1)] = 4.28

Price-sales ratio = $43.20/  [$827,500 /$82,000]

Price-sales ratio = $43.20/10.091

Price-sales ratio = 4.28

Therefore the price-sales ratio if the market price is $43.20 per share is: 4.28.

Learn more about Price-sales ratio here:https://brainly.com/question/28256715

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The complete question is:

Income Statement For the Year

Net sales $827,500

COGS 611,800

Depreciation 23,100

EBIT $192,600

Interest 9,700

Taxable income $182,900

Taxes 6,200

Net income $176,700

Balance Sheet

Beginning of Year End of Year

Cash $ 38,200 $43,700

Accounts receivable 91,400 86,150

Inventory 203,900 214,600

Net fixed assets 516,100 537,950

Total assets $849,600 $882,400

Accounts payable $136,100 $104,300

Long-term debt 329,500 298,200

Common stock ($1 par value) 75,000 82,000

Retained earnings 309,000 397,900

Total Liab. & Equity $849,600 $882,400

What is the price-sales ratio if the market price is $43.20 per share? (Use end-of-year values)