A Company Has Net Income of $90,000; Its Weighted-Average Common

question 172

Multiple Choice

A company has net income of $90,000; its weighted-average common shares outstanding are 18,000. Its dividend per share is $0.45, its market price per share is $88, and its book value per share is $76. Its price-earnings ratio equals:

• A) 12.5.
• B) 17.6.
• C) 15.2.
• D) 9.0.
• E) 16.9.

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Definitions:

Glucose

is a simple sugar and an important energy source in living organisms, also a vital component of many carbohydrates.

Reabsorbed

The process by which substances are taken back into the body's tissues, particularly in the context of renal function and nutrient conservation.

Antibiotic

Medications used to combat bacterial infections, working by killing bacteria or inhibiting their growth.

Penicillin

A group of antibiotics derived from Penicillium fungi, used to treat bacterial infections by inhibiting cell wall synthesis.