Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 60,000 shares. Ale Corporation's common stock is selling for $76 per share on the New York Stock Exchange. Ale Corporation's price-earnings ratio is
A)3.2 times.
B)22.8 times.
C)19 times.
D)12.7 times.

Question

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The Answer of Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 60,000 shares. Ale Corporation's common stock is selling for $76 per share on the New York Stock Exchange. Ale Corporation's price-earnings ratio is
A)3.2 times.
B)22.8 times.
C)19 times.
D)12.7 times.

Ale Corporation Had Net Income of $240,000 and Paid Dividends