Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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9. S Corporation had net income of $250,000
and paid dividends to common stockholders
of $50,000 in 2013. The weighted average
number of shares outstanding in 2013 was
50,000 shares. S Corporation's common
stock is selling for $40 per share on the Stock
Exchange.
What is the price-earnings ratio?
2
5
10
8
Transcribed Image Text:9. S Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. S Corporation's common stock is selling for $40 per share on the Stock Exchange. What is the price-earnings ratio? 2 5 10 8
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