The Following Information Pertains to Ortiz Company What Is the Price-Earnings Ratio for Ortiz?
A)6

question 77

Multiple Choice

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets }&\$300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 160,000\\\text { Total Liabilities and Stockholders' Equity }&\$300,000\\\\\text { Income Statement }\\\text { Sales } & \$ 100,000 \\\text { Cost of goods sold } & 55,000\\\text { Gross profit }&\$45,000\\\text { Operating expenses }&15,000\\\text { Net income }&\$30,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 30 \\\text { Dividends per share } & .50\end{array}$ What is the price-earnings ratio for Ortiz?

• A)6.0 times
• B)1.1 times
• C)5 times
• D)5.5 times

---

Definitions:

Social Learning

The process of acquiring behaviors and norms through observing and imitating others within a social context.

Stigmatized

This term describes individuals or groups that are labeled by society as being undesirable or discredited, often leading to discrimination and exclusion.

Ostracized

Excluded from a group or society with general consent, often as a form of social punishment.

Shaming

The act of publicly or privately making someone feel ashamed or humiliated, often as a form of punishment or control.