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A Corporation Reported Net Income of $3,730,000 and Paid Preferred

question 119

Essay

A corporation reported net income of $3,730,000 and paid preferred cash dividends of $100,000 during the current year.There were 600,000 shares of common stock outstanding and the market price per common share was $88.33 at year-end.Calculate the company's price-earnings ratio.


Definitions:

Coefficient Of Determination

A statistical measure that assesses the proportion of variance in a dependent variable that is predictable from the independent variable(s).

Variance

The statistical measurement of the spread between numbers in a data set, indicating how much each number differs from the mean of the data set.

Negative

A value less than zero or a direction opposite to the expected or common.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how spread out the data points are.

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