A company has net income of $950,000; its weighted-average common shares outstanding are 190,000. Its dividend per share is $0.95, its market price per share is $98, and its book value per share is $91.00. Its price-earnings ratio equals: Multinle Choice

A company has net income of $950,000; its weighted-average common shares outstanding are 190,000. Its dividend per share is $0.95, its market price per share is $98, and its book value per share is $91.00. Its price-earnings ratio equals: Multinle Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company has net income of $950,000; its weighted-average common shares outstanding are 190,000. Its dividend per share is
$0.95, its market price per share is $98, and its book value per share is $91.00. Its price-earnings ratio equals:
Multiple Choice
19.60.
7.00.
18.20.
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