A company reports the following:

Net income	$185,000
Preferred dividends	$25,000
Shares of common stock outstanding	100,000
Market price per share of common stock	$20

Determine the company's price-earnings ratio.

$1.60

10.8

9250

12.5

When the contract interest rate (also called "coupon" or "stated" rate) on a particular bond issue is lower than the market rate of interest on similar bonds, the bond issue will sell at

a premium

its face value

its maturity value

a discount

Which of the following would be the most likely to read a managerial accounting report prepared for Nike, Inc.?

		a shareholder of Nike's common stock
		Nike's controller
		the general public
		a potential investor in Nike's corporate bonds