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:

Atomic

Relating to atoms, the smallest particles of an element that retain the properties of that element.

Compound

Consisting of two or more elements, parts, or substances combined into one entity; often used in chemistry and linguistics.

Singular Statement

A declaration concerning only one object, person, or idea.

Atomic Singular Statement

An assertion about a particular, specific event or object without reference to other events or objects.