The Crestar Company reported net income of $112,000 on 20,000 average 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 $95. What is this company's current price-earnings ratio?

A. 20
B. 17
C. 19
D. None of these answers is correct.


Answer: C

Business

You might also like to view...

Which method for estimating uncollectible accounts receivable is considered to be balance-sheet oriented?

A) ?Aging of accounts receivable method B) ?Percentage of net sales method C) ?Direct write-off method D) ?Gross receivables method

Business

A factor is an underlying dimension that explains the correlations among a set of variables

Indicate whether the statement is true or false

Business

(CMA adapted, Jun 96 #15) Refer to the Fabulous Engine Company example. If Fabulous uses a weighted average periodic inventory system, the total cost of the inventory for carburetor 2642J at March 31 is

a. $188,374 b. $194,200 c. $198,301 d. $198,374 e. $199,233

Business

An employee who contacts the SEC to report her company's use of illegal accounting procedures is an example of a(n)

A. scab. B. whistle-blower. C. ombudsman. D. crony. E. corporate snitch.

Business