The balance sheets at the end of each of the first two years of operations indicate the following:<\/p>
<\/p>
<\/p>
2016<\/p>
2015<\/p>
Total current assets$600,000<\/p>
$560,000<\/p>
Total investments60,000<\/p>
40,000<\/p>
Total property, plant, and equipment900,000<\/p>
700,000<\/p>
Total current liabilities125,000<\/p>
80,000<\/p>
Total long-term liabilities350,000<\/p>
250,000<\/p>
Preferred 9% stock, $100 par100,000<\/p>
100,000<\/p>
Common stock, $10 par600,000<\/p>
600,000<\/p>
Paid-in capital in excess of par--common stock60,000<\/p>
60,000<\/p>
Retained earnings325,000<\/p>
210,000<\/p>
<\/p>
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)?<\/p>", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "1530904382", "uri": "\/textbooks\/php-learn-php-in-24-hours-or-less-a-beginners-guide-to-learning-php-programming-now-1st-edition-9781530904389", "name": "PHP Learn PHP In 24 Hours Or Less A Beginners Guide To Learning PHP Programming Now", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:25:17", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/find-the-potential-in-the-infinite-slot-of-ex-33", "description": "Find the potential in the infinite slot of Ex. 3.3 if the boundary at x = 0 consists of two metal strips: one, from y = 0 to y = a\/2, is held at a constant potential V0, and the other, from y = a\/2...", "stars": 3 }, { "url": "\/study-help\/psychology\/compare-the-two-major-reasons-for-conducting-a-literature-review-1980026", "description": "Compare the two major reasons for conducting a literature review: as a basis for conducting your own research or as an end in itself.", "stars": 3 }, { "url": "\/balanced-scorecard-and-strategy-music-master-company-manufactures-an-mp3", "description": "Balanced scorecard and strategy. 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