McDaniel Corporation Had Net Income for 2016 of $72,000

question 23

Multiple Choice

McDaniel Corporation had net income for 2016 of $72,000.McDaniel had 6,000 shares of common stock outstanding at the beginning of the year and 26,000 shares of common stock outstanding at the end of the year.There were 8,000 shares of preferred stock outstanding all year.During 2016,McDaniel declared and paid preferred dividends of $19,000.On December 31,2106,the market price of McDaniel's common stock is $48 per share and the market price of its preferred stock is $69 per share.What is McDaniel's price/earnings ratio? (Round any intermediate calculations and your final answer to the nearest cent. )

• A)14.50
• B)20.85
• C)17.33
• D)15.33

---

Definitions:

Benefit

An advantage, improvement, or gain received from a product or service, often considered in decision-making or evaluations of welfare.

Cost

An amount that must be paid or spent to buy or obtain something, covering the consumption of resources such as time, labor, and materials.

Deal

A contractual agreement between two or more parties for the purpose of buying, selling, or exchange of goods, services, or any transaction leading to mutual benefits.

Benefit

An advantage or profit gained from something, including direct financial gains or more intangible positive outcomes.