The Crestar Company Reported Net Income of $100,000 on 20,000

question 131

Multiple Choice

The Crestar Company reported net income of $100,000 on 20,000 outstanding common shares. Preferred dividends total $12,000. On the most recent trading day, the preferred shares sold at $50 and the common shares sold at $80. What is this company's current price-earnings ratio? (rounded)

• A)16
• B)18
• C)20
• D)None of the other answers are correct.

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Definitions:

Retrieval Cues

Stimuli or signals that help in the recall of memories stored in the brain.

Operant Conditioning

A learning process through which behavior is shaped by reinforcement or punishment.

Social Learning

is the process of acquiring new behaviors or knowledge through observing and imitating others, as articulated by Albert Bandura.

Classical Conditioning

A learning process in which a neutral stimulus comes to elicit a response after being paired with a stimulus that naturally brings about that response.