A company reported net income of $6 million. During the year the average number of common shares outstanding was 3 million. The price of a share of common stock at the end of the year was $5. There were 400,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative. The Price/Earnings Ratio is approximately:
a. $0.40. b. $1.76. c. $1.86. d. $2.00.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company reported net income of $6 million. During the year the average number of common shares outstanding was 3 million. The price of a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
On January 1, 2021, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027.
Answers (1)
You missed writing down a transaction but your account indicates you spent your entire cleaning budget of $750. Your other transactions were $78, $144, $209, and $171. What is the value of the missed transaction?
Answers (1)
A tax imposed on the assets of one who dies
Answers (2)
Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a niche cost leader strategy. From last year's reports, which company would be the strongest competitor?
Answers (1)
Suppose that the president of a small island nation has decided to increase government spending by building more libraries. The legislation was enacted without any delay. From here, planning will take 6 months and building will take 2 months.
Answers (1)
New Questions in Business
You've written a check to Goodwill Supply, and the check has been lost. What should you do? A. Stop payment on the first check; then write a second one. B. Send a counter check to Goodwill. C. Write another check immediately. D.
Answers (1)
All of the following are liabilities except a) accounts receivable. b) salaries payable. c) notes payable. d) accounts payable.
Answers (1)
Suppose that you are the treasurer of IBM with an extra US$1,000,000 to invest for six months. You are considering the purchase of U. S. T-bills that yield 1.
Answers (1)
13. Where do you find the amount when writing a check to Payroll?
Answers (1)
what marginal costs and benefits might a tour boat operator consider when deciding whether to purchase a new boat?
Answers (1)