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The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $623,581 $565,852 Total investments 65,015 52,566 Total property, plant, and equipment 892,827 783,010 Total current liabilities 101,786 87,429 Total long-term liabilities 320,088 236,250 Preferred 9% stock, $100 par 82,525 82,525 Common stock, $10 par 562,333 562,333 Paid-in capital in excess of par-common stock Retained earnings 62,334 452,357 62,334 370,557 Using the balance sheets for Kellman Company, if net income is $108,199 and interest expense is $33,097 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)? a. 9.47 b. 18.44 Oc. 9.67 Od. 1.79
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