Question 18 Which of the following statements is true of a corporation? O A Corporations pay income tax on corporate eamings, and shareholders pay personal income tax on corporate dividends and gains from sale of stock. Shareholders are authorized to sign contracts or make business commitments on behalf of the corporations c. The liabilities of a corporation can be paid by the personal assets of the shareholders D. Corporations have a legal responsibility to pay dividends. Question 19 2 pour Raquel has $2,000 that she would like to invest. However, she is indecisive to which firm she should invest in and believes calculating each company's PE will help her decide. Current Share Price: aming per Share: $ 27 $3.00 iconderega S 30 53.75 Given the above information, calculate the P/E ratios for both firms Pentel:1; Ticonderoga:1 OB Pentel 9:1; Ticonderoga 8:1 c. The PE ratios are the same for both D.Pentel 81, Ticonderoga 112.5