Recher Corporation's Common Stock Has a Par Value of $3

question 205

Multiple Choice

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. The company's price-earnings ratio is closest to:

• A)19.79
• B)0.51
• C)8.36
• D)12.53

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Definitions:

Outcome

The result or consequence of an action, process, or situation, often used to evaluate effectiveness.

Fringe Benefits

Fringe benefits are additional compensations given to employees beyond their regular salaries or wages, such as health insurance, paid vacation, and retirement plans.

Equity Theory

A theory in social psychology that explains how perceptions of fairness influence motivation, satisfaction, and behavior in interpersonal relationships.

Input

The information, resources, or contributions provided towards achieving a specific goal or outcome.