Tempel Corporation has provided the following data: $\begin{array}{ll}
&\text { Year 2 } & \text { Year 1 } \
\text {Common stock, \$4 par value }&\$ 240,000 & \$ 240,000 \
\text { Total stockholders' equity. }&\$ 817,000 & \$ 810,000 \
\text {Net operating income. }&\$ 36,714 & \
\text {Net income before taxes }&\$ 17,714 & \
\text { Net income }&\$ 12,400 &
\end{array}$ The market price of common stock at the end of Year 2 was $2.77 per share. The company's price-earnings ratio for Year 2 is closest to:
A)9.23
B)0.35
C)4.54
D)13.40

Question

Tempel Corporation has provided the following data: $\begin{array}{ll}
&\text { Year 2 } & \text { Year 1 } \
\text {Common stock, \$4 par value }&\$ 240,000 & \$ 240,000 \
\text { Total stockholders' equity.  }&\$ 817,000 & \$ 810,000 \
\text {Net operating income.  }&\$ 36,714 & \
\text {Net income before taxes }&\$ 17,714 & \
\text { Net income }&\$ 12,400 &
\end{array}$ The market price of common stock at the end of Year 2 was $2.77 per share. The company's price-earnings ratio for Year 2 is closest to:
A)9.23
B)0.35
C)4.54
D)13.40

Quizplus · Accepted Answer

The Answer of Tempel Corporation has provided the following data: $\begin{array}{ll}
&\text { Year 2 } & \text { Year 1 } \
\text {Common stock, \$4 par value }&\$ 240,000 & \$ 240,000 \
\text { Total stockholders' equity.  }&\$ 817,000 & \$ 810,000 \
\text {Net operating income.  }&\$ 36,714 & \
\text {Net income before taxes }&\$ 17,714 & \
\text { Net income }&\$ 12,400 &
\end{array}$ The market price of common stock at the end of Year 2 was $2.77 per share. The company's price-earnings ratio for Year 2 is closest to:
A)9.23
B)0.35
C)4.54
D)13.40

Tempel Corporation Has Provided the Following Data The Market Price of Common Stock at the End of 2