Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is
A) 12.5 times.
B) 8.0 times.
C) 6.5 times.
D) 9.1 times.

Question

Quizplus · Accepted Answer

The Answer of Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is
A) 12.5 times.
B) 8.0 times.
C) 6.5 times.
D) 9.1 times.

Beta Corporation Had Net Income of $325,000 and Paid Dividends