XYZ Corporation reported a net income of $4,500,000 and paid dividends of $900,000 to common stockholders last year. The weighted average number of shares outstanding was 1,200,000. XYZ's common stock currently trades at $60 per share on the NYSE. Calculate XYZ Corporation's price-earnings ratio.

XYZ Corporation reported a net income of $4,500,000 and paid dividends of $900,000 to common stockholders last year. The weighted average number of shares outstanding was 1,200,000. XYZ's common stock currently trades at $60 per share on the NYSE. Calculate XYZ Corporation's price-earnings ratio.

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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Need help with this question solution general accounting

XYZ Corporation reported a net income of $4,500,000 and paid
dividends of $900,000 to common stockholders last year. The
weighted average number of shares outstanding was 1,200,000.
XYZ's common stock currently trades at $60 per share on the
NYSE.
Calculate XYZ Corporation's price-earnings ratio.

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