The balance sheets at the end of each of the first two years of operations indicate the following:

-If net income is $130,000 and interest expense is $40,000 for 2011,and the market price is $40,what is the price-earnings ratio on common stock (rounded to one decimal place)?
A)14.9
B)18.4
C)17.3
D)19.8

Question

The balance sheets at the end of each of the first two years of operations indicate the following:
 
-If net income is $130,000 and interest expense is $40,000 for 2011,and the market price is $40,what is the price-earnings ratio on common stock (rounded to one decimal place)?
A)14.9 
B)18.4 
C)17.3 
D)19.8

Quizplus · Accepted Answer

The Answer of The balance sheets at the end of each of the first two years of operations indicate the following:
 
-If net income is $130,000 and interest expense is $40,000 for 2011,and the market price is $40,what is the price-earnings ratio on common stock (rounded to one decimal place)?
A)14.9 
B)18.4 
C)17.3 
D)19.8

The Balance Sheets at the End of Each of the First