contestada

That Wich Corp. had additions to retained earnings for the year just ended of $362,624. The firm paid out $226,257 in cash dividends, and it has ending total equity of $4,614,400. The company currently has 150,000 shares of common stock outstanding. If the stock currently sells for $73 per share, what is the price-earnings ratio?

Respuesta :

Answer:

price earning ratio = 18.62 time

Explanation:

given data

earning = $362624

dividends = $226257

total equity = $4614400

common stock = 150000 shares

currently sells = $73 per share

to find out

price earning ratio

solution

we know that  price earning ratio = [tex]\frac{market price}{earning per share}[/tex]    ...........................1

here market price is $73 per share and

earning per share is = [tex]\frac{earning +dividends}{common stock}[/tex]

earning per share = [tex]\frac{362624 + 226257}{150000}[/tex]

earning per share = 3.92 per share

so from equation 1

price earning ratio = [tex]\frac{73}{3.92}[/tex]

price earning ratio = 18.62 time

Otras preguntas