Rather Corporation's annual report is as follows.
If the current market price is $17 on March 31, 2019, compute the price/earnings ratio on March 31, 2019. (Round any intermediate calculations and your final answer to the nearest cent.)
A) 9.39
B) 2.15
C) 1.81
D) 7.91
A) 9.39
Explanation: Average Number of Common Shares Outstanding = (275,464 + 200,168) / 2 = 237,816
Earnings Per Share = Net Income / Average Number of Common Shares Outstanding Earnings Per Share = $429,500 / 237,816 = $1.81
P/E Ratio = Current Market Price / EPS
P/E Ratio = $17 / $1.81 = 9.39
You might also like to view...
The Sarbanes-Oxley Act addresses corporate ______.
a. taxation b. budgeting c. governance d. liability
Active listening is also known as ______.
A. empathetic listening B. energetic listening C. focused listening D. directed listening
A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is known as
A. cultural fit. B. international protectionism. C. consumer ethnocentrism. D. xenophobia. E. sociocultural bias.
Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract
Indicate whether the statement is true or false