The balance sheets at the end of each of the first two years of operations...
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Accounting
The balance sheets at the end of each of the first two years of operations indicate the following:
2016
2015
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par--common stock
60,000
60,000
Retained earnings
325,000
210,000
Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)?
Question 57 options:
a)
14.9
b)
18.4
c)
17.3
d)
19.8
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