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Ray Of Light [21]
3 years ago
8

Net income $ 209,600 Preferred stock outstanding, 12% cumulative $ 80,000 Market price per share of common stock $ 24.00 Total S

tockholders’ Equity $ 1,240,000 Average number of common shares outstanding 100,000 shares Number of common shares outstanding at end of the accounting period 120,000 shares Dividends per share on common stock $ 0.50 per share.
Based on this information the company's price-earnings ratio:


(a). 5 to 1

(b). 12 to 1

(c). 2 to 1

(d). 10 to 1
Business
1 answer:
Svetllana [295]3 years ago
6 0

Answer:

Option (B) is correct.

Explanation:

Earning available for equity stockholders:

= Net Income - Preferred stock dividend

= $209,600 - ($80,000 × 12%)

= $209,600 - $9,600

= $200,000

Earning Per Share:

= Earning available for equity stockholders ÷ Average number of common shares outstanding

= $200,000 ÷ 100,000

= $2

Price-Earning Ratio = Price of Share ÷ Earning Per Share

                                 = $24 ÷ $2

                                 = 12 Times or 12:1

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Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience <u>role overload.</u>

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3 years ago
What is true of the product combination that satisfies allocative efficiency? Select all that apply: a. It is the combination of
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Answer:

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Answer:

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