Barbur,Inc

question 9

Multiple Choice

Barbur,Inc.reported net income of $12 million.During the year the average number of common shares outstanding was 3 million.The price of a share of common stock at the end of the year was $5.There were 400,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative. The Price/Earnings ratio is approximately:

• A)1.00.
• B)1.25.
• C)1.42.
• D)6.25.

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Definitions:

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