Frost Corporation Reported Net Income of $65,000 in 2013

question 121

Multiple Choice

Frost Corporation reported net income of $65,000 in 2013. The company had 90,000 shares of $12 par value common stock outstanding and a market price of $18 per share. Frost's price-earnings ratio was closest to:

• A)25:1
• B)2.5:1
• C)16.6:1
• D)1.5:1

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Definitions:

Random Sampling

A method in statistics for selecting a subset of individuals from a population in such a way that each individual has an equal chance of being selected.

Inductive Argument

Reasoning that moves from specific instances to a generalized conclusion, typically involving probability rather than certainty.

Premises

Statements or ideas that form the basis for a reasoned argument or the background against which an argument is formed.

Conclusion

The statement that logically follows from the premises in a logical argument, often signified by therefore.