BVI Corporation Had Net Income of $1,600,000 and Paid Dividends

question 41

Multiple Choice

BVI Corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2017. The weighted average number of shares outstanding in 2017 was 500,000 shares. BVI Corporation's common stock is selling for $40 per share on the NASDAQ. BVI Corporation's price-earnings ratio is

• A) 3.2 times.
• B) 12.5 times.
• C) 8 times.
• D) 4 times.

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Definitions:

Electroencephalograph Pattern

The recorded electrical activity of the brain as detected by electrodes; used in neurological diagnostics.

Waking state

The state of consciousness when one is awake and aware of one's surroundings.

Circadian Rhythm

A natural internal process that regulates the sleep-wake cycle and repeats on each rotation of the Earth roughly every 24 hours.

Electroencephalograph

A medical instrument used to record the electrical activity of the brain.