Presented Below Are Selected Data from the Financial Statements of Parade

question 32

Multiple Choice

Presented below are selected data from the financial statements of Parade Corp. $\begin{array}{lrr}&{2016}&{\mathbf{2 0 1 7}} \\\text { Net income } & \$ 150,000 & \$ 123,000 \\\text { Weighted average number of common shares outstanding } & 105,000 & 95,000 \\\text { Market price per share of common stock at the end of the year } & \$ 12.00 & \$ 10.00\end{array}$ The price/earnings ratio for 2017 is

• A) .80 to 1
• B) 1.43 to 1
• C) 8.39 to 1
• D) 12.50 to 1

---

Definitions:

Tort

A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability.

Public Wrong

Acts or offenses that violate laws established to protect the public and maintain social order, dealt with through criminal justice system.

Criminal Suit

A legal action brought against an individual or organization accused of committing a crime.

Private Wrong

A legal injury or violation affecting an individual or a specific entity, as opposed to the public or society at large.