BVI Corporation Had Net Income of $1,600,000 and Paid Dividends

question 144

Multiple Choice

BVI Corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2022.The weighted-average number of shares outstanding in 2022 was 500,000 shares.BVI Corporation's common stock is selling for $40 per share on the NASDAQ.BVI Corporation's price-earnings ratio is

• A)3.2 times.
• B)12.5 times.
• C)8 times.
• D)4 times.

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Definitions:

Enterprising

Showing initiative, willingness to undertake new ventures; having an entrepreneurial spirit.

Conventional

Pertaining to common practices, methods, or standards accepted by a large group or society.

Agentic Professions

Occupations that are associated with getting things accomplished.

Communal

Pertaining to or shared by the members of a community; often refers to resources or responsibilities held in common.