Alexas Corporation Reports the Following -If Price to Book Value at the End of 2005

question 3

Multiple Choice

Alexas Corporation reports the following:
$\begin{array}{|l|l|}\hline&\mathbf{2 0 0 5}\\\hline \text { Earnings per share } & \$ 1.80 \\\hline \text { Dividends per share } & \$ 0.72\\\hline \text { Book Value per share-end of year } & \$8.62\\\hline\end{array}$
-If Price to book value at the end of 2005 equals 1.00, then P/E ratio at end of 2003 equals (pick closest number) :

• A) 8.38
• B) 4.78
• C) 4.19
• D) Not determinable

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Definitions:

Cash Dividends

Distributions from a company to its shareholders, representing a share of the firm's profits.

Dividend Revenue

Income received from owning shares in a company when the company distributes some of its earnings to shareholders.

Debt Investments-HTM

Debt Investments-HTM (Held-to-Maturity) are debt securities a company intends and is able to hold until they mature, recorded at amortized cost.

Bonds Payable

Long-term liabilities representing money a company owes to holders of its bonds, which must be repaid at a future date.