Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding...

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Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding in 2018 was 100,000 s

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Answer 1

Answer #1

Price-earnings ratio = Price per share/Earnings per share

Earnings per share = Net Income/Shares outstanding

EPS = $300,000/100,000 = $3/share

Price-earnings ratio = $36/$3 = 12.0 times

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Answer 2

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