The Apple Pie Company Had Net Income of $47,500 and Earnings

question 37

Multiple Choice

The Apple Pie Company had net income of $47,500 and earnings per share of $3.17. Apple Pie declared dividends of $2 per share of common stock during 2014. On December 31, 2014, the stock had a market price of $18.50 per share. Apple Pie's price/earnings ratio is closest to:

• A) 9.25
• B) 8.11
• C)5.84
• D)0.17