A company has a net income of $960,000, with 150,000 weighted-average common shares outstanding and a market value per share of $120. Question: What is the company's price-earnings (P/E) ratio? a. 16.2 b. 18.8 c. 14.5 d. 19.0 e. 8.5
A company has a net income of $960,000, with 150,000 weighted-average common shares outstanding and a market value per share of $120. Question: What is the company's price-earnings (P/E) ratio? a. 16.2 b. 18.8 c. 14.5 d. 19.0 e. 8.5
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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What is the company's price earnings ratio on these general accounting question?

Transcribed Image Text:A company has a net income of $960,000, with 150,000
weighted-average common shares outstanding and a market
value per share of $120.
Question: What is the company's price-earnings (P/E) ratio?
a. 16.2
b. 18.8
c. 14.5
d. 19.0
e. 8.5
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