A company has net income of $90,000; its weighted-average common shares outstanding are 18,000. Its dividend per share is $0.45, its market price per share is $88, and its book value per share is $76. Its price-earnings ratio equals:
A. 9.0.
B. 16.9.
C. 12.5.
D. 17.6.
E. 15.2.
Answer: D
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If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:
A. $138,500. B. $137,000. C. $150,000. D. $95,000. E. $140,000.
Enloe Manufacturing has prepared a production budget for June. Management has determined that the total required production for June is 680,000 units when an ending inventory of 50,000 units is desired and the beginning inventory is 30,000 units. Based on the above information, what were June's budgeted sales?
A) 660,000 units B) 700,000 units C) 760,000 units D) 680,000 units
One major risk a firm assumes in an aggressive financing strategy is ________
A) the possibility that collections will be slower than expected B) the possibility that long-term funds may not be available when needed C) the possibility that short-term funds may not be available when needed D) the possibility that it will run out of cash
A successful defense against a product liability case is typically expensive in terms of legal fees
a. True b. False Indicate whether the statement is true or false