Kelemen,Inc The Company Has No Preferred Stock Outstanding

question 89

Multiple Choice

Kelemen,Inc.provides the following information for 2017: $$\begin{array} { | l | l | } \hline \text { Net income } & \$ 260,000 \\\hline \text { Market price per share of common stock } & \$ 50 \text { per share } \\\hline \text { Dividends paid } & \$ 190,000 \\\hline \text { Common stock outstanding at Jan. } 1,2017 & 150,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2017 & 210,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.(Round any intermediate calculations and your final answer to two decimal places. )

• A)40.32 times
• B)50.00 times
• C)34.72 times
• D)28.90 times

---

Definitions:

Obsessive-Compulsive Disorder

A mental health disorder characterized by unwanted intrusive thoughts (obsessions) and repetitive behaviors or mental acts (compulsions).

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear.

Nursing Home

A living facility designed for people who need ongoing nursing oversight and struggle significantly with managing everyday life activities.