Hubbard Company had 8,000 shares of common stock outstanding throughout the year.The following information is also available:
$$\begin{array} { | l | r| }
\hline\text { Stockholders' equity, end of year } & \$ 3,200,000 \
\hline \text { Net income for the year } & 800,000 \
\hline \text { Market price per share, end of year } & \$ 112 \
\hline
\end{array}$$ Required:
Calculate the Price/Earnings ratio at the end of the current year.

Question

Hubbard Company had 8,000 shares of common stock outstanding throughout the year.The following information is also available:
 $$\begin{array} { | l | r| } 
\hline\text { Stockholders' equity, end of year } & \$ 3,200,000 \
\hline \text { Net income for the year } & 800,000 \
\hline \text { Market price per share, end of year } & \$ 112 \
\hline
\end{array}$$ Required:
Calculate the Price/Earnings ratio at the end of the current year.

Quizplus · Accepted Answer

The Answer of Hubbard Company had 8,000 shares of common stock outstanding throughout the year.The following information is also available:
 $$\begin{array} { | l | r| } 
\hline\text { Stockholders' equity, end of year } & \$ 3,200,000 \
\hline \text { Net income for the year } & 800,000 \
\hline \text { Market price per share, end of year } & \$ 112 \
\hline
\end{array}$$ Required:
Calculate the Price/Earnings ratio at the end of the current year.

Hubbard Company Had 8,000 Shares of Common Stock Outstanding Throughout