Financial Statements for Larkins Company Appear Below

question 196

Multiple Choice

Financial statements for Larkins Company appear below:


Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.


-Larkins Company's price-earnings ratio on December 31, Year 2 was closest to:

• A) 8.91
• B) 8.57
• C) 20.79
• D) 6.00

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Definitions:

Mechanical Braking Efficiencies

The effectiveness of a braking system in converting mechanical energy into heat to slow down or stop a vehicle.

S-cam Actuated Brakes

A type of drum brake that is activated by a rotating S-shaped cam to push brake shoes against a rotating drum.

Spring Brake Priority System

A braking system that utilizes spring force for activation, often as a fail-safe or parking brake mechanism.

Hold-off Chambers

Enclosures within a hydraulic system designed to temporarily contain fluid under pressure, used to modulate system response or delay actuation.