On December 31,Sulfur Corporation has the following data available: What is the price-earnings ratio? (Round the final answer to two decimal places. )

Question

On December 31,Sulfur Corporation has the following data available:  What is the price-earnings ratio? (Round the final answer to two decimal places. )

Quizplus · Accepted Answer

(Net income of $120,000 - Preferred dividends of $20,000)/ weighted-average number of shares of common stock outstanding of 20,000 = $5.00 earnings per share
Market price of $4/ Earnings per share of $5.00 = 0.80

On December 31,Sulfur Corporation Has the Following Data Available