A Company Has Net Income of $850,000

question 173

Multiple Choice

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

• A)16.9
• B)14.7
• C)92.0
• D)13.5
• E)8.0

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Definitions:

Teamwork

Collaborative efforts of a group to achieve common goals and objectives more effectively and efficiently than individual members working independently.

Assembly Tasks

Activities involved in putting together parts or components to form a finished product, often performed in a manufacturing setting.

Specialized Division

A separate unit within an organization that focuses on a specific area of expertise or a particular type of product or service.

Mergers

The process by which two or more companies combine to form a single entity, often to enhance competitive strengths or expand market reach.