A Company Originally Issues 180,000 Shares at a Price of $22;

question 90

Multiple Choice

A company originally issues 180,000 shares at a price of $22; one year later the share price is $40 and the number of outstanding shares is unchanged.During the year,the company had net income of $230,400.The P/E ratio at the end of the year is:

• A)0.0002.
• B)24.22.
• C)31.25.
• D)0.0001.

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Definitions:

Document

A written, printed, or electronic record that provides evidence of a transaction or commitment.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Internal Document

Documents used within an organization, such as memos, reports, and internal manuals, that are not shared with external parties.

Cash Payments

Monetary transactions made by an entity to settle obligations or purchase goods and services.