Question
The following information has been gathered for ABC Company at December 31, 2020. Net income for 2020 was $800,000. Dividends of $40,000 were paid to
The following information has been gathered for ABC Company at December 31, 2020. Net income for 2020 was $800,000. Dividends of $40,000 were paid to common shareholders and there were 120,000 common shares outstanding. The market value of the company's common shares is currently $14 per share. At December 31, 2020, the company's price/earnings ratio is?
A.6.67.
B.2.21.
C.2.10.
D.none of the above.
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Using Financial Accounting
Authors: Carl S. Warren, Jeff Jones, Amanda Farmer
1st Edition
0357507851, 9780357507858
