Beta Corporation Had Net Income of $325000 and Paid Dividends

question 88

Multiple Choice

Beta Corporation had net income of $325000 and paid dividends to common stockholders of $39000 in 2021.The weighted average number of shares outstanding in 2021 was 50000 shares.Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange.Beta Corporation's price-earnings ratio is

• A)12.5 times.
• B)8.0 times.
• C)6.5 times.
• D)9.1 times.

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Definitions:

Public University

An institution of higher education and research which is supported by public funds and usually affiliated with a national or state government.

High-Stakes Testing

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The phase of the menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization.