Tito Corporation Had Net Income of $2,000,000 and Paid Dividends

question 45

Multiple Choice

Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2022.The weighted-average number of shares outstanding in 2022 was 400,000 shares.Tito Corporation's common stock is selling for $50 per share on the NASDAQ.Tito Corporation's price-earnings ratio is

• A)20 times.
• B)12 times.
• C)10 times.
• D)5 times.

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Definitions:

Corpus Spongiosum

A spongy tissue surrounding the urethra that becomes engorged with blood during an erection, preventing the urethra from pinching closed.

Urethra

A tube that carries urine from the bladder to be expelled out of the body in both males and females, and also conveys semen in males.

Extraembryonic Membrane

Membranes surrounding the embryo that provide protection, nutrition, waste removal, and gas exchange during the development of amniotic eggs.

Urinary Bladder

A muscular sac in the pelvis that stores urine from the kidneys before disposal by urination.