Hungry Lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock are outstanding?
A) 13,520
B) 12,460
C) 165,745
D) 171,308
E) 170,702

Question

Quizplus · Accepted Answer

To find the number of outstanding shares, we can use the formula:

Net Income / Earnings per Share = Number of Outstanding Shares

Plugging in the given values:

$73,402 / $0.43 = 170,702

Therefore, the answer is E) 170,702.

Hungry Lunch Has Net Income of $73,402, a Price-Earnings Ratio