The Crestar Company Reported Net Income of $112,000 on 20,000

question 5

Multiple Choice

The Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares.Preferred dividends total $12,000.On the most recent trading day,the preferred shares sold at $50 and the common shares sold at $95.What is this company's current price-earnings ratio?

• A) 19
• B) 17
• C) 20
• D) None of these answers are correct.

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