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

question 254

Multiple Choice

Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $50,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Beta Corporation's common stock is selling for $45.50 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is

• A) 14.0 times.
• B) 7.0 times.
• C) 6.1 times.
• D) 8.3 times.

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Definitions:

Health

A condition of total well-being encompassing physical, mental, and social aspects, rather than simply the lack of disease or weakness.

Regular Exercise

A routine of physical activity performed consistently for the purpose of maintaining or improving one's health and fitness.

Reduced Cancer Risk

The lowering of the probability of developing cancer, achieved through lifestyle changes, such as diet, exercise, and avoidance of carcinogens.

Cardiovascular Fitness

The ability of the heart, blood cells, and lungs to supply oxygen-rich blood to the working muscle tissues and the ability of these muscles to use oxygen to produce energy for movement.