A company has a market value per share of $73.00. Its net income is $1,750,000 and the weighted-average number of shares outstanding is 350,000. The company's price-earnings ratio equals: a. 20.9. b. 4.2. c. 14.6. d. 20.0. e. 6.8.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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A company has a market value per share of $73.00. Its net
income is $1,750,000 and the weighted-average number of
shares outstanding is 350,000.
The company's price-earnings ratio equals:
a. 20.9.
b. 4.2.
c. 14.6.
d. 20.0.
e. 6.8.
Transcribed Image Text:A company has a market value per share of $73.00. Its net income is $1,750,000 and the weighted-average number of shares outstanding is 350,000. The company's price-earnings ratio equals: a. 20.9. b. 4.2. c. 14.6. d. 20.0. e. 6.8.
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