Carter's Books, Inc

question 37

Multiple Choice

Carter's Books, Inc., has net income of $75,000 and a plowback ratio of 80%. There are 30,000 shares of stock outstanding at a market price of $25.50 a share. What is the price-earnings ratio?

• A)6.9
• B)8.2
• C)9.7
• D)10.2
• E)11.6

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Definitions:

Codetermination

Cooperation between management and workers in decision-making, particularly by the representation of workers on boards of directors.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Workers' Representation

The process by which workers select individuals or bodies to negotiate and communicate on their behalf with management.

Meganational Strategy

No real key term defined as "Meganational Strategy."