Question

# URGENT!!! Please help me understand this. A company has net income of \$880,000; its weighted-average common...

A company has net income of \$880,000; its weighted-average common shares outstanding are 176,000. Its dividend per share is \$1.15, its market price per share is \$102, and its book value per share is \$97.00. Its price-earnings ratio equals:

Price earning ratio = Market price per share / Earning per share

Earning per share = Net income / Weighted average common shares outstanding

Earning per share = \$880,000 / 176,000 = \$5

Price earning ratio = \$102 / \$5 = 20.4

Hence Price earning ratio equals to 20.4

#### Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### 1. Mayan Company had net income of \$34,830. The weighted-average common shares outstanding were 8,600. The...

1. Mayan Company had net income of \$34,830. The weighted-average common shares outstanding were 8,600. The company has no preferred stock. The company's earnings per share is: Multiple Choice \$4.11. \$3.99. \$5.00. \$1.17. \$4.05. 2. A company has net income of \$875,000; its weighted-average common shares outstanding are 175,000. Its dividend per share is \$1.20, its market price per share is \$103, and its book value per share is \$98.50. Its price-earnings ratio equals: Multiple Choice 4.50. 20.60. 19.70. 3.30....

• ### Help Save&Exit Su Gargantic Inc. had net income of \$90,000 for 2018; its weighted-average common shares...

Help Save&Exit Su Gargantic Inc. had net income of \$90,000 for 2018; its weighted-average common shares outstanding for 2018 was 18,000 shares. The Company's dividend per share was \$0.45, its market price per share was \$88, and its book value per share was \$76. What was Gargantic inc's pric/earnings ratio for 2018? Multiple Choice 176. 5.2 50 None of the other 3 answer choices is the correct price/eamings ratio for Gargantic Inc. for 2018 < Prev 4 of 10辮 Next>...

• ### Mayan Company had net income of \$33,580. The weighted-average common shares outstanding were 9,200. The company...

Mayan Company had net income of \$33,580. The weighted-average common shares outstanding were 9,200. The company has no preferred stock. The company's earnings per share is: Multiple Choice \$5.00 \$3.71. \$3.59 \$1.39. \$3.65 Authorized shares 28,000 Issued shares 23,000 7,500 Treasury shares The number of outstanding shares is: Multiple Choice 28,000. 35,500 23,000. 20,500. Hutter Corporation declared a \$0.50 per share cash dividend on its common shares. The company has 24,000 shares authorized 11,400 shares issued, and 9,600 shares of...

• ### Alciatore Company reported a net income of \$150,000 in 2018. The weighted-average number of common shares...

Alciatore Company reported a net income of \$150,000 in 2018. The weighted-average number of common shares outstanding for 2018 was 40,000. The average stock price for 2018 was \$33. Assume an income tax rate of 40%. Required: For each of the following independent situations, indicate whether the effect of the security is antidilutive for diluted EPS. Alciatore Company reported a net income of \$150,000 in 2018. The weighted-average number of common shares outstanding for 2018 was 40,000. The average stock...

• ### s an investment. Specifically, use the three stock ratios to determine whether the common stock has...

s an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness eamings ratio. i Data Table \$ 2018 42,000 \$ 24,000 13,200 2017 37,200 24,000 13,200 Net Income Dividends-Common Dividends-Preferred Total Stockholders' Equity at Year-End (includes 60,000 shares of common stock) Preferred Stock Market Price per Share of Common Stock 790,000 220,000 18.50 \$ 580,000 220,000 12.00 Print Done eck Answer. Clear All ommon stock of Manson State Bank as...

• ### Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding...

Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding 300 The annual report of Sweet Cars, Inc., for the year ended December 31, 2018, included the following items (in millions): (Click the icon to view the items on the annual report.) 1. Calculate earnings per share (EPS) and the price-earnings ratio for Sweet Cars' stock. Round to the nearest cent. The price of a share of the company's stock is \$35.91. 2. How...

• ### please help with both questions Trenton Company has provided the following information: Net income, \$220,000; ....

please help with both questions Trenton Company has provided the following information: Net income, \$220,000; . Preferred shares issued, 5,800; Weighted average number of shares of common stock issued, 23,800; . Cash dividends declared and paid on common stock, \$28,000; . Market price per share, \$34; Weighted average number of treasury shares of common stock, 3,800. What is Trenton's earnings per share? O \$924. O \$7.97 O \$11.00. O \$7.86.

• ### 1. Given the following data: Net Income Preferred Dividends Common Dividends Common Shares Outstanding \$500,000 40,000...

1. Given the following data: Net Income Preferred Dividends Common Dividends Common Shares Outstanding \$500,000 40,000 250,000 150,000 shs Market price per share Dec. 31 S27 Calculate: a. b. Earnings per share The price-earnings ratio The dividend yield rate on common stock A. Earnings per share: B. The price-earnings ratio: Ans. C. The dividend yield rate on common stock: Ans.

• ### Use the following information to answer questions 14- 16 Stephens Corp. has 14,000 shares of common stock outstanding. During the year, Stephens has a net income of \$56,000 and pays a dividend of...

Use the following information to answer questions 14- 16 Stephens Corp. has 14,000 shares of common stock outstanding. During the year, Stephens has a net income of \$56,000 and pays a dividend of \$2.40 per share. The market price for the common stock is \$48.00 per share 14. What is the dividend payout ratio? 15. What is the dividend yield ratio? 16. What is the price-earnings ratio? Use the following information to answer questions 14- 16 Stephens Corp. has 14,000...

• ### Mayan Company had net income of \$132,000. The weighted-average common shares outstanding were 80,000. The company...

Mayan Company had net income of \$132,000. The weighted-average common shares outstanding were 80,000. The company has no preferred stock. The company's earnings per share is: A. \$1.65 B. \$1.59 C. \$44.00 D. \$26.67 E. \$1.71