Dooley Corporation Had Net Income of $200,000 and Paid Dividends

question 66

Multiple Choice

Dooley Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2011.The weighted average number of shares outstanding in 2011 was 50,000 shares.Dooley Corporation's ordinary shares are selling for $50 per share on the New York Stock Exchange.Dooley Corporation's price-earnings ratio is

• A)3.2 times.
• B)12.5 times.
• C)8 times.
• D)15.6 times.

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Definitions:

Wage System

A method or structure for compensating employees based on hours worked, job role, or performance, among other factors.

Aggregated Wealth

The total market value of all financial and non-financial assets owned by a group or country, minus liabilities.

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A union of several groups, states, or organizations that are designed to work together for a common purpose, often seen in government structures or trade unions.

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