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

question 57

Multiple Choice

The Crestar Company reported net income of $112,000 on 20,000 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 is correct.

---

Definitions:

Affinitizing

The process of grouping related information or ideas into categories to better analyze or understand them.

Multivoting

A decision-making technique used in groups to narrow down a large set of options to a manageable number by allowing multiple votes.

Prioritization Matrix

A tool used to rank projects, tasks, or options based on their relative importance and urgency.

Collaborative Decision Making

The process by which multiple stakeholders work together to come to a decision regarding an issue or problem.