Barber Industries Reported Net Income of $32,000, Earnings Per Share

question 162

Multiple Choice

Barber Industries reported net income of $32,000, earnings per share of $2, and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

• A)10.00
• B)10.67
• C)1.50
• D)6.67

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Definitions:

Further Involvement

The process or action of becoming more deeply engaged or entrenched in an activity or situation.

Deviance

Behaviors or actions that violate societal norms and expectations, which can vary widely between cultures and settings.

Organizational Imperative

A crucial or essential action, policy, or procedure that is considered necessary for the successful operation of an organization.

Chambliss

Likely referring to William J. Chambliss, a sociologist known for his research on the sociology of law, crime, and deviance.