Kelemen,Inc.provides the following information for 2017:

The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.(Round any intermediate calculations and your final answer to two decimal places. )
A)55.56 times
B)70.00 times
C)49.65 times
D)43.48 times

Question

Kelemen,Inc.provides the following information for 2017:

The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.(Round any intermediate calculations and your final answer to two decimal places. )
A)55.56 times 
B)70.00 times 
C)49.65 times 
D)43.48 times

Quizplus · Accepted Answer

C)
 11ea8a42_4f7b_80be_8b44_8f9b9feff564_TB5024_00 * Earnings per share = (Net income- Preferred dividend)/ Weighted average number of common shares outstanding
**Price/earnings ratio = Market price per share of common stock / Earnings per share

Kelemen,Inc.provides the Following Information for 2017