Silas Corporation Had Net Income of $200,000 and Paid Dividends

question 105

Multiple Choice

Silas Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Silas Corporation's ordinary shares are selling for $50 per share on the New York Stock Exchange. Silas Corporation's price-earnings ratio is

• A) 3.2 times.
• B) 12.5 times.
• C) 15.6 times.
• D) 4 times.

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Definitions:

Inductive Reactance

The resistance to change in current flow offered by an inductor, measured in ohms.

Total Impedance

Total impedance is the measure of the overall opposition an electrical circuit presents to alternating current, combining both its resistive and reactive components.

Series RL Circuit

A circuit composed of a resistor (R) and an inductor (L) arranged in series with each other, used to filter or shape signals among other applications.

Inductive Reactance

The opposition offered by an inductor to the flow of alternating current (AC), dependent on both the frequency of the current and the inductance of the inductor.