Help Doonan Corporation has provided the following financial data from its balan

Question

Help Doonan Corporation has provided the following financial data from its balance sheet and income statement Year 2Year 1 $1,489,000 1,440,000 Total assets Stockholders' equity: 360,000 360,000 $70,000 70,000 $ 570,000 550,000 $1,000,000 980,000 $ 15,000 s 14,162 $26,300 Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Interest expense Income taxes (35%) Net income The market price of common stock at the end of Year 2 was $479 per share. The company's price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places) Multiple Choice O 773

Explanation / Answer

Price earning ratio = MPS/EPS

EPS for year 2 = (26300/90000) = 0.29

Price earning ratio for year 2 = 4.79/0.29 = 16.52 times

so answer is b) 16.52

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.