Dalmatian Corporation's annual report is as follows.

If the current market price is $19 on March 31,2016,compute the price/earnings ratio on March 31,2017.(Round any intermediate calculations and your final answer to the nearest cent. )

Question

Dalmatian Corporation's annual report is as follows.

If the current market price is $19 on March 31,2016,compute the price/earnings ratio on March 31,2017.(Round any intermediate calculations and your final answer to the nearest cent. )

Quizplus · Accepted Answer

A)Average Number of Common Shares Outstanding = (277,464 + 206,168)/ 2 = 241,816.00
Earnings Per Share = Net Income / Average Number of Common Shares Outstanding Earnings Per Share = $438,500 / 241,816.00 = $1.81
P/E Ratio = Current Market Price / EPS
P/E Ratio = $19 / $1.81 = 10.50

Dalmatian Corporation's Annual Report Is as Follows