Blue Company Reported - the Price-Earnings Ratio Per Ordinary Share Is:
A)1

question 39

Multiple Choice

Blue Company reported: $\begin{array}{ll}\text { Share price } & \$ 18 \\\text { Net profit } & \$ 3000 \\\text { Preference dividend } & \$ 500 \\\text { Ordinary dividend } & \$ 1000 \\\text { Issued ordinary shares } & 1000 \text { shares }\end{array}$
- The price-earnings ratio per ordinary share is:

• A)1.8:1
• B)7.2:1
• C)5.0:1
• D)3.0:1

---

Definitions:

Investment Property

Real estate property acquired to earn rental income, capital appreciation, or both, rather than for use in operations or as inventory.

Lease Revenue Recognition

The process of recognizing income earned from leasing out assets over the lease term.

Lease Liability

An obligation representing the present value of lease payments due over the lease term by the lessee.

Executory Costs

Ongoing operational expenses related to a leased asset, typically including insurance, maintenance, and taxes, that are usually paid for by the lessee.