Beta Corporation Had Net Income of $325,000 and Paid Dividends

question 9

Multiple Choice

Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is

• A) 12.5 times.
• B) 8.0 times.
• C) 6.5 times.
• D) 9.1 times.

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Definitions:

Product Placement

The strategic placement of products in movies, TV shows, or other media to increase visibility and sales.

Global Activity

Interactions, transactions, or operations conducted across international borders that affect the economies and societies of more than one country.

Infomercials

Long-form television commercials that are designed to educate and persuade viewers about a product or service, typically lasting longer than a traditional commercial.

Viral Advertising

A marketing strategy that relies on social networks and word-of-mouth to increase brand awareness rapidly.