Question
The balance sheets at the end of each of the first two years of operations indicate the following: 2016 2015 Total current assets$600,000 $560,000 Total
The balance sheets at the end of each of the first two years of operations indicate the following:
2016
2015
Total current assets$600,000
$560,000
Total investments60,000
40,000
Total property, plant, and equipment900,000
700,000
Total current liabilities125,000
80,000
Total long-term liabilities350,000
250,000
Preferred 9% stock, $100 par100,000
100,000
Common stock, $10 par600,000
600,000
Paid-in capital in excess of par--common stock60,000
60,000
Retained earnings325,000
210,000
Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)?
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Financial Shenanigans
Authors: Howard Schilit
2nd Edition
0071386262, 9780071386265
