Sperle Corporation Has Provided the Following Data Concerning Its Stockholders

question 105

Multiple Choice

Sperle Corporation has provided the following data concerning its stockholders' equity accounts:
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.
-The company's price-earnings ratio for Year 2 is closest to:

• A) 0.38
• B) 4.53
• C) 5.70
• D) 8.11

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Definitions:

Ligaments

Strong, fibrous tissues that connect bones to other bones, providing stability and support to joints.

Tendons

Tough, flexible bands of fibrous tissue that connect muscles to bones, transmitting the force necessary to move the bone.

Muscles

Tissues in the body that have the ability to contract, enabling movement.

Identifiable Cause

A specific, known reason or factor that leads to a condition or event.