On December 31, 2011 and 2012, Taft Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding. Additional information:

The price-earnings ratio on common stock at December 31, 2012, was
A) 10 to 1.
B) 12 to 1.
C) 14 to 1.
D) 16 to 1.

Question

On December 31, 2011 and 2012, Taft Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding. Additional information:

The price-earnings ratio on common stock at December 31, 2012, was
A) 10 to 1. 
B) 12 to 1. 
C) 14 to 1. 
D) 16 to 1.

Quizplus · Accepted Answer

The Answer of On December 31, 2011 and 2012, Taft Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding. Additional information:

The price-earnings ratio on common stock at December 31, 2012, was
A) 10 to 1. 
B) 12 to 1. 
C) 14 to 1. 
D) 16 to 1.

On December 31, 2011 and 2012, Taft Corporation Had 100,000