Children's Books,Inc

question 17

Multiple Choice

Children's Books,Inc.has net income of $50,000 and a plowback ratio of 80 percent.There are 22,000 shares of stock outstanding at a market price of $18.64 a share.What is the price-earnings ratio?

• A) 6.9
• B) 8.2
• C) 9.7
• D) 11.1
• E) 11.6

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