Bogart Company has 40,000 shares of common stock outstanding. The book value per share of this stock was $60.00 and the market value per share was $75.00 at the end of the year. Net income for the year was $400,000. Interest on long-term debt was
$40,000. Dividends paid to common shareholders were $3.00 per share. The tax rate was 30%. The company's price-earnings ratio at the end of the year was:
A) 25 to 1
B) 20 to 1
C) 7.5 to 1
D) 6 to 1
Answer: C
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