Daniel Corporation Had Net Income for 2018 of $75,000

question 18

Multiple Choice

Daniel Corporation had net income for 2018 of $75,000.Daniel had 6000 shares of common stock outstanding at the beginning of the year and 22,000 shares of common stock outstanding at the end of the year.There were 8000 shares of preferred stock outstanding all year.During 2018,Daniel declared and paid preferred dividends of $26,000.On December 31,2018,the market price of Daniel's common stock is $45 per share and the market price of its preferred stock is $73 per share.What is Daniel's price/earnings ratio at December 31,2018? (Round any intermediate calculations and your final answer to the nearest cent.)

• A) 12.86
• B) 20.86
• C) 13.20
• D) 13.63

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Definitions:

Taxable Income

The amount of income that is subject to taxation, after all allowable deductions, credits, and exemptions.

Total Income

The sum of all earnings received by an individual or entity, encompassing wages, salaries, profits, rents, and other forms of earnings.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income increases, placing a higher burden on wealthier individuals.

Percentage Of Income

A measure or calculation that represents a portion of a person's income.