Quasar Corporation had net income of $300000 and paid dividends to common stockholders of $40000 in 2017. The weighted average number of shares outstanding in 2017 was 60000 shares. Quasar Corporation's common stock is selling for $35 per share on the New York Stock Exchange. Quasar Corporation's price-earnings ratio is
A) 5.7 times.
B) 7 times.
C) 14 times.
D) 8.1 times.

Question

Quizplus · Accepted Answer

The Answer of Quasar Corporation had net income of $300000 and paid dividends to common stockholders of $40000 in 2017. The weighted average number of shares outstanding in 2017 was 60000 shares. Quasar Corporation's common stock is selling for $35 per share on the New York Stock Exchange. Quasar Corporation's price-earnings ratio is
A) 5.7 times.
B) 7 times.
C) 14 times.
D) 8.1 times.

Quasar Corporation Had Net Income of $300000 and Paid Dividends