A company has earnings per share net income of $900,000; its weighted-average common shares outstanding are 180,000.Its dividend per share is $0.45,its market price per share is $88,and its book value per share is $76.Its price-earnings ratio equals:

Question

Quizplus · Accepted Answer

Price-Earnings Ratio = Market Price per Share/(Net Income/Weighted-Average Common Shares Outstanding)
Price-Earnings Ratio = $88/($900,000/180,000) = 17.6

A Company Has Earnings Per Share Net Income of $900,000;