A company has 100,000 shares of common stock outstanding on January 1 and issued 40,000...

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Accounting

A company has 100,000 shares of common stock outstanding on January 1 and issued 40,000 more common shares on October 1. Net income for the year is reported as $600,000. During the year, a $65,000 dividend was paid on common stock while a $105,000 dividend was paid on preferred stock. The market price of the common stock was $27.00 per share at the end of the year. What is the P/E ratio as of December 31?
Group of answer choices
4.95
7.63
6.00
6.91
6.31

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