Problem

For the following questions, circle the best response.Use the following information for Qu...

For the following questions, circle the best response.

Use the following information for Question.

Information concerning O’Sadnick, Inc., on December 31, 2010, is as follows:

Book value per share

$24.00

Dividends per share

1.00

Earnings per share

4.00

Par value per share

2.00

Market price per share

16.00

What is O’Sadnick, Inc.’s price/earnings ratio for 2010?

a. 0.25

b. 1.5

c. 4.0

d. 8.0

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