A Company Has Net Income of $90,000; Its Weighted-Average Common

question 228

Multiple Choice

A company has net income of $90,000; its weighted-average common shares outstanding are 18,000.Its dividend per share is $0.45,its market price per share is $88,and its book value per share is $76.Its price-earnings ratio equals:

• A)9.0.
• B)17.6.
• C)12.5.
• D)15.2.
• E)16.9.

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