Odegaard Corporation's Net Income Last Year Was $1,811,000

question 60

Essay

Odegaard Corporation's net income last year was $1,811,000. The dividend on common stock was $3.20 per share and the dividend on preferred stock was $1.00 per share. The market price of common stock at the end of the year was $50.20 per share. Throughout the year, 300,000 shares of common stock and 200,000 shares of preferred stock were outstanding.
Required:
Compute the price-earnings ratio. Show your work!

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Definitions:

Inputs And Outputs

In the context of systems or processes, inputs are the resources that are utilized (such as labor, materials, and capital), while outputs are the products or services produced.

Organizational Pressure

The force or influence within an organization that affects individuals' decisions, behaviors, and wellbeing, often resulting from internal or external expectations.

External Source

An entity or resource outside of an organization that provides information, materials, or services.

Operating Efficiencies

Refers to the ability of an organization to minimize costs and resource use while maximizing output and productivity.