Alberta High Skies Company Has Net Income of $3 Million

question 1

Multiple Choice

Alberta High Skies Company has net income of $3 million.It issued 500,000 shares two years ago at an issue price of $20 per share,and the stock is now trading at $35 per share.What is Alberta High Skies' price-earnings ratio?

• A) 1.75
• B) 3.33
• C) 5.83
• D) 9.17

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Definitions:

Support Departments

Units within an organization that provide services or support to the operational departments, but do not directly contribute to the production of goods or services.

Cafeteria Department Costs

The expenses associated with operating a cafeteria within an organization, including food supplies, labor, and equipment.

Reciprocal Services Method

An approach used in cost accounting to allocate costs between departments that provide services to each other.

Support Department Costs

Expenses related to departments that do not directly generate revenue but provide essential services to revenue-generating departments.