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The balance sheets at the end of each of the first two years of operations indicate the following: Total current assets Total investments Total property,
The balance sheets at the end of each of the first two years of operations indicate the following: Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par--common stock Retained earnings 2011 $600,000 60,000 900,000 125,000 350,000 100,000 600,000 60,000 325,000 2010 $560,000 40,000 700,000 80,000 250,000 100,000 600,000 60,000 210,000 If net income is $130,000 and interest expense is $40,000 for 2011, and the market price is $40, what is the price-earnings ratio on common stock (rounded to one decimal place)? Select one: a. 14.9 b.18.4 c. 17.3 d. 19.8
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