A company has a market value per share of $45.50. Its net income is $2,250,000 and the weighted-average number of shares outstanding is 500,000. The company's price-earnings ratio equals: 1. 9.1 2. 10.1 3. 11.4 4. 15.2

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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A company has a market value per share of $45.50. Its net
income is $2,250,000 and the weighted-average number of
shares outstanding is 500,000. The company's price-earnings
ratio equals:
1. 9.1
2. 10.1
3. 11.4
4. 15.2
Transcribed Image Text:A company has a market value per share of $45.50. Its net income is $2,250,000 and the weighted-average number of shares outstanding is 500,000. The company's price-earnings ratio equals: 1. 9.1 2. 10.1 3. 11.4 4. 15.2
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