In 2012 Robert Corporation Had Net Income of $250,000 and Paid

question 104

Multiple Choice

In 2012 Robert Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. They had 50,000 shares of common stock outstanding during the entire year. Robert Corporation's common stock is selling for $50 per share on the New York Stock Exchange. Robert Corporation's price-earnings ratio is

• A) 10 times.
• B) 5 times.
• C) 2 times.
• D) 8 times.

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Definitions:

Dodd-Frank Act

Comprehensive financial reform legislation enacted in 2010 in the United States, aimed at reducing risks in the financial system following the financial crisis of 2008.

SEC

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CEO's Compensation

The payment and benefits package provided to the Chief Executive Officer of a corporation, which may include salary, bonuses, stocks, and other benefits.

Emerging Growth Companies

refers to businesses with revenues below a specific threshold, allowing them access to increased flexibility in regulatory requirements to foster growth.