1. Hotel Inc. has annual sales of $750,000. Earnings before interest and taxes is equal to 20 percent of sales. For the period, the firm paid $10,000 in interest. What is the net profit margin if the tax rate is 35 percent?
2. A company has total sales of $925,200 and a profit margin of 9.7 percent. Currently, the firm has 25,000 shares outstanding. What are the earnings per share?
3. A company has total assets of $1,000,000. There are 50,000 shares of stock outstanding with a market value of $30 a share. The firm has net income of $110,000 and a total asset turnover of 1.4. What is the price-earnings ratio?