Dalmatian Corporation's annual report is as follows
March 31, 2016 March 31, 2017
Net Income $360,000 $428,500
Preferred Dividends 0 0
Total Stockholders' Equity $4,250,000 $5,102,000
Stockholders' Equity attributable to Preferred Stock 0 0
Number of Common Shares Outstanding 290,464 196,168
If the current market price is $23 on March 31, 2016, compute the price/earnings ratio on March 31, 2017. (Round any intermediate calculations and your final answer to the nearest cent.)
A) 13.07
B) 2.18
C) 1.76
D) 10.55
A .A) Average Number of Common Shares Outstanding = (290,464 + 196,168 ) / 2 = 243,316.00
Earnings Per Share = Net Income / Average Number of Common Shares Outstanding Earnings Per Share = $428,500 / 243,316.00 = $1.76
P/E Ratio = Current Market Price / EPS
P/E Ratio = $23 / $1.76 = 13.07
You might also like to view...
The typeface used in a document can influence the tone of a message
Indicate whether the statement is true or false.
On December 1, 20X8, Hedge Company entered into a 60-day speculative forward contract to sell 200,000 British pounds (£) at a forward rate of £1 = $1.78. On the same day it purchased a 60-day speculative forward contract to buy 100,000 euros (€) at a forward rate of €1 = $1.42.The rates are as follows: Forward Rate for Forward Rate forDateSpot Rate Feb 1 Spot Rate Feb 1December 1, 20X8£1=$1.76 $1.78 €1=$1.40 $1.42 December 31, 20X8£1= 1.73 1.74 €1= 1.38 1.40 February 1, 20X9£1= 1.75 €1= 1.41 Hedge had no other speculation transactions in 20X8 and 20X9. Ignore taxes.Based on the preceding information, what is the net gain or loss on the British pound speculative contract?
A. $6,000 gain B. $10,000 gain C. $8,000 gain D. $3,000 loss
Compare and contrast the four subsystems for organizational change.
What will be an ideal response?
Publicity is easily controlled in a free-press environment
Indicate whether the statement is true or false a. True b. False