The Crestar Company Reported Net Income of $112,000 on 20,000

question 75

Multiple Choice

The Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares.Preferred dividends total $12,000.On the most recent trading day,the preferred shares sold at $50 and the common shares sold at $95.What is this company's current price-earnings ratio?

• A) 19
• B) 17
• C) 20
• D) None of these answers is correct.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Making a Loss

Making a loss occurs when a business's total expenses exceed its total revenues during a specific period, indicating that the business is not financially profitable.

Minimize Losses

Strategies or measures taken to reduce the extent of financial loss or to prevent future losses.

Total Cost

Total cost is the entire expense associated with the production of a set of goods or services, including both fixed and variable costs.