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A company has a net income of $1,250,000; its weighted-average common shares outstanding are 200,000. Its dividend per share is $2.00, its market price per share is $50, and its book value per share is $45. What is the company's price-earnings ratio?

A company has a net income of $1,250,000; its weighted-average common shares outstanding are 200,000. Its dividend per share is $2.00, its market price per share is $50, and its book value per share is $45. What is the company's price-earnings ratio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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A company has a net income of $1,250,000; its weighted-average common shares outstanding are 200,000. Its dividend per share is $2.00, its market price per share is $50, and its book value per share is $45. What is the company's price-earnings ratio?
Transcribed Image Text:A company has a net income of $1,250,000; its weighted-average common shares outstanding are 200,000. Its dividend per share is $2.00, its market price per share is $50, and its book value per share is $45. What is the company's price-earnings ratio?
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