Pharoah Company had a net income of $1,617,000 and paid dividends to common stockholders of $336,875 in 2022. The weighted average number of shares outstanding in 2022 was 468,930 shares. Pharoah Company common stock is selling for $50 per share on the NASDAQ. Pharoah Company's price-earnings ratio is: a. 3.4 times. b. 14.5 times. c. 4.8 times. d. 9.6 times.

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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Please help me given correct answer general Accounting question

Pharoah Company had a net income of $1,617,000 and paid
dividends to common stockholders of $336,875 in 2022. The
weighted average number of shares outstanding in 2022 was
468,930 shares. Pharoah Company common stock is selling for $50
per share on the NASDAQ.
Pharoah Company's price-earnings ratio is:
a. 3.4 times.
b. 14.5 times.
c. 4.8 times.
d. 9.6 times.
Transcribed Image Text:Pharoah Company had a net income of $1,617,000 and paid dividends to common stockholders of $336,875 in 2022. The weighted average number of shares outstanding in 2022 was 468,930 shares. Pharoah Company common stock is selling for $50 per share on the NASDAQ. Pharoah Company's price-earnings ratio is: a. 3.4 times. b. 14.5 times. c. 4.8 times. d. 9.6 times.
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