Company price-earnings ratio


A company has net income of $850,000. It also has 125,000 weighted-average common shares outstanding and a market value per share of $115. The company's price-earnings ratio is equal to:

a) 16.9

b) 14.7

c) 92.0

d) 13.5

e) 8.0

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Accounting Basics: Company price-earnings ratio
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