Crestar Company Reported Net Income of $87,400 on 18,000 Average

question 101

Multiple Choice

Crestar Company reported net income of $87,400 on 18,000 average outstanding common shares. Preferred dividends total $11,800. On the most recent trading day, the preferred shares sold at $48 and the common shares sold at $78. What is this company's current price-earnings ratio? (Do not round your intermediate calculations.)

• A)16.06
• B)18.57
• C)20.59
• D)None of these answers choices are correct.

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Definitions:

Statement of Owners' Equity

A financial document detailing the changes in ownership interest, including investments and withdrawals, over a period.

Public Company Accounting Oversight Board

A regulatory body established by Congress to oversee the audits of public companies, with the aim of protecting investors and the public interest by ensuring informative, accurate, and independent audit reports.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws, regulating the securities industry, and ensuring market integrity.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the United States.