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A company has net income of $885,000; its weighted-average common shares outstanding are 177,000. Its dividend per share is $1.10, its market price per share is $101, and its book value per share is $95.50. Its price-earnings ratio equals:

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Tundexi

Answer:

20.2 or 20.2:1

Explanation:

EPS =  Net Income / common shares outstanding

EPS = $885,000 / 177,000 shares

EPS = $5

Market price per share = $101

Price-earnings ratio = Market price per share / EPS

Price-earnings ratio = $101 / $5

Price-earnings ratio = 20.2 or 20.2:1