Trenton Company has provided the following information: • Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.
What is Trenton's price/earnings ratio?
A) 3.0
B) 5.1
C)3.4
D)4.5

Question

Quizplus · Accepted Answer

The Answer of Trenton Company has provided the following information: • Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.
What is Trenton's price/earnings ratio?
A) 3.0
B) 5.1
C)3.4
D)4.5

Trenton Company Has Provided the Following Information: • Net Income