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A Company Reported Net Income of $836,000 for the Current

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Essay

A company reported net income of $836,000 for the current year.The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding.Calculate the company's price-earnings ratio.


Definitions:

Gross Earnings

The total amount of income earned by an individual or company before any deductions such as taxes and other withholdings.

Withholding Allowance

A determination used to calculate the amount of federal income tax to withhold from an employee's paycheck.

Gross Earnings

The total amount of money earned by an individual or a company before any deductions or taxes are applied.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax is owed to the government.

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