company has no preferred stock. At the end of Year Five, Friar’s stock was selling for $27 per share. Which of the following is Friar’s price-earnings ratio on that date?
company has no preferred stock. At the end of Year Five, Friar’s stock was selling for $27 per share. Which of the following is Friar’s price-earnings ratio on that date?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
Friar Inc. reported net income for Year Five of $2,480,000. It had 720,000 shares of common stock outstanding on January 1, Year Five, and repurchased 120,000 of those shares on September 1, Year Five, as treasury stock . The company has no preferred stock . At the end of Year Five, Friar’s stock was selling for $27 per share. Which of the following is Friar’s price-earnings ratio on that date?
Responses
-
6.54
-
7.85
-
9.15
-
7.40
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