AT&T Inc. had the EBIT (earnings before interest and tax) of $31,618 million, interest expense of...
AT&T Inc. had the EBIT (earnings before interest and tax) of $31,618 million, interest expense of $7,959 million, and the tax expense of $4,920 million. Its current share price is $30.99 per share. It has 7,280 million shares outstanding. Compute its current Price-Earnings (P/E) ratio,
Homework Answers
| EBIT | 31618 million |
| Less:interest | 7959 million |
| EBT | 23659 million |
| Less:tax expense | 4920 million |
| Net income | 18739 million |
EPS=Net income/Shares outstanding
=(18739/7280)=$2.574038462
PE ratio=Market price/EPS
=(30.99/2.574038462)
=12.04(Approx).
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