Figure 16-1. Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2011.The weighted average number of shares outstanding in 2011 was 50,000 shares.Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange.
Refer to Figure 16-1.Starbuck's price-earnings ratio is
A)2.
B)5.
C)10.
D)8.

Question

Quizplus · Accepted Answer

The Answer of Figure 16-1. Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2011.The weighted average number of shares outstanding in 2011 was 50,000 shares.Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange.
Refer to Figure 16-1.Starbuck's price-earnings ratio is
A)2.
B)5.
C)10.
D)8.