Firehawk Corporation Had Net Income of $560,000 in 20x5 and Paid

question 25

Multiple Choice

Firehawk Corporation had net income of $560,000 in 20x5 and paid dividends of $440,000 on 200,000 shares of outstanding common stock.Total stockholders' equity at the end of 20x5 was $2,060,000 and the market price for each share of Firehawk's stock was $58 throughout 20x5.Based on this information,what is the price/earnings ratio for Firehawk's stock?

• A)96.67 times.
• B)20.71 times.
• C)4.83 times.
• D)26.36 times.

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Definitions:

Aggregate Planning

A process in operations management aiming to determine an optimal production plan to meet fluctuating demand in the medium term while minimizing costs.

Subcontracting

The practice of assigning part of the obligations and tasks under a contract to another party, often to specialize in particular tasks or save on costs.

Inventory

Describes the goods and materials that a business holds for the ultimate goal of resale or production.

Overtime

Additional hours worked beyond the standard working hours, often resulting in higher pay rates.