Hungry Lunch Has Net Income of $73,402, a Price-Earnings Ratio

question 36

Multiple Choice

Hungry Lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock are outstanding?

• A) 13,520
• B) 12,460
• C) 165,745
• D) 171,308
• E) 170,702

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Definitions:

Work Expected

The anticipated amount of work or output that is expected from a process, project, or employee within a given timeframe.

Employee

An individual who works part-time or full-time under a contract of employment, providing labor to an employer in return for wages or salary.

Management Functions

Activities such as planning, organizing, leading, and controlling that are performed by management to efficiently and effectively coordinate the work of an organization.

Planning

The process of making plans for something, including setting goals and determining the means to achieve them.