A Company Has Net Income of $850,000

question 122

Multiple Choice

A company has net income of $850,000. It has 125,000 weighted-average ordinary shares outstanding, a market value per share of $115, and a book value of $100 per share. The company's price-earnings ratio equals:

• A) 16.9.
• B) 14.7.
• C) 92.0.
• D) 13.5.
• E) 8.0.

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