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.

---

Definitions:

Emotional Contagion

The phenomenon where individuals catch or adopt the emotions of those around them, whether consciously or unconsciously.

Emotional Framing

The use of language and messaging designed to elicit emotional responses, influencing how information is perceived and processed.

Business Judgment Rule

A legal principle that protects corporate directors or officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Property Taxes

Taxes assessed on real estate by local government, calculated based on the assessed value of the property.