A Company Has Net Income of $90,000; Its Weighted-Average Common

question 172

Multiple Choice

A company has net income of $90,000; its weighted-average common shares outstanding are 18,000. Its dividend per share is $0.45, its market price per share is $88, and its book value per share is $76. Its price-earnings ratio equals:

• A) 12.5.
• B) 17.6.
• C) 15.2.
• D) 9.0.
• E) 16.9.