Given the Following Information What Is the Price/earnings Ratio?
A)3

question 47

Multiple Choice

Given the following information: $\begin{array}{lr}\text { Preferred dividends}&\$50\\\text {Income taxes }&\$200\\\text { Average number of sharess outstanding}&250\text { shares}\\\text {Market price per common share }&\$10\\\text { Net income}&\$600\\\end{array}$
What is the price/earnings ratio?

• A)3.3 times
• B)2.9 times
• C)3.8 times
• D)4.5 times

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