Frost Corporation reported net income of $65,000 in 2013. The company had 90,000 shares of $12 par value common stock outstanding and a market price of $18 per share. Frost's price-earnings ratio was closest to:

Name: Frost Corporation reported net income of $65,000 in 2013. The company had 90,000 shares of $12 par value common stock outstanding and a market price of $18 per share. Frost's price-earnings ratio was closest to:
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

$65,000/90,000 shares = $0.72 EPS; $18 market price/.72 EPS = 25

Frost Corporation Reported Net Income of $65,000 in 2013