Montreal Electronics Has the Following Data Available $\text{Weighted Average Number of Common}$

question 50

Multiple Choice

Montreal Electronics has the following data available:
$\begin{array}{lll}&&&&&& 2013 & 2012 \\ \text { Net Income } &&&&&& \$ 90 & \$ 80 \\\text { Preferred Dividends Per Share }&&&&&& \$ 0 & \$ 0\end{array}$
$\text{Weighted Average Number of Common}$
$\begin{array} { c l l } \text { Shares Outstanding During Year } & 200 & 200 \\\text { Annuel Common Dividende Per Share } & \$ 1.40 & \$ .20 \\\text { Closing Market Price Common Stcck, 12/31 } & \$ 9.00 & \$ 6.06\end{array}$
What is the price-earnings ratio for Montreal Electronics in 2013? Has the price-earnings ratio improved or not improved since 2012?

• A)15,not improved
• B)15,improved
• C)15,unknown
• D)20,improved
• E)20,not improved

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Definitions:

Customer Refunds Payable

Liabilities on a company's balance sheet representing money owed to customers for returned goods or services that did not meet expectations.

Estimated Returns Inventory

An estimate of the goods or materials that are expected to be returned by customers over a certain period.

Discount Period

The time frame within which a payment is made early enough to receive a discount for early payment.

Invoice Payment

The process of paying off the amount that is stated on an invoice, which is a bill for products or services provided.