A Company Has Net Income of $850,000

question 173

Multiple Choice

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

• A)16.9
• B)14.7
• C)92.0
• D)13.5
• E)8.0

Understand the relationship between management accounting information and organizational strategy.

Recognize the importance of ethical behavior and continuous improvement for accountants.

Identify the major professional organizations for management accountants in Australia.

Understand the concepts of control, planning, and strategy within management accounting.

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Definitions:

Gram

An alternative definition: A basic unit of weight in the metric system equivalent to approximately 0.035 ounces.

Milliliters

A metric system volume unit that equals one thousandth of a liter.

Liters

A unit of volume in the metric system, equivalent to 1,000 cubic centimeters or approximately 0.26 gallons.

Centimeter

A unit of length in the metric system, equivalent to one hundredth of a meter, used commonly to measure small distances.