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:

Tympany

A drum-like sound produced during percussion of a body cavity with significant air content, often heard in the abdomen.

Xiphoid Process

The small, cartilaginous projection at the lower end of the sternum, which can become ossified in adults.

Aortic Pulsations

The rhythmic expansion and contraction felt over the aorta, reflecting the heartbeat and blood flow.

Peristalsis

The coordinated, rhythmic contractions of smooth muscle that occur in the digestive tract to move food and waste products through the body.