Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Stockholders' equity: Common stock, $5 par value Additional paid-in capital Retained earnings Total stockholders' equity Year 2 Year 1 $ 400,000 60,000 654,000 $ 400,000 60,000 630,000 $ 1,114,000 $ 1,090,000 Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. The company's price-earnings ratio for Year 2 is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice о 5.70 4.53 0.38 8.11

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
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Sperle Corporation has provided the following data concerning its stockholders' equity accounts:
Stockholders' equity:
Common stock, $5 par value
Additional paid-in capital
Retained earnings
Total stockholders' equity
Year 2
Year 1
$ 400,000
60,000
654,000
$ 400,000
60,000
630,000
$ 1,114,000
$ 1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.
The company's price-earnings ratio for Year 2 is closest to: (Round your Intermediate calculations to 2 decimal places.)
Multiple Choice
о
5.70
4.53
0.38
8.11
Transcribed Image Text:Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Stockholders' equity: Common stock, $5 par value Additional paid-in capital Retained earnings Total stockholders' equity Year 2 Year 1 $ 400,000 60,000 654,000 $ 400,000 60,000 630,000 $ 1,114,000 $ 1,090,000 Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. The company's price-earnings ratio for Year 2 is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice о 5.70 4.53 0.38 8.11
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