Accounting Midterm Exam ACG-2011: Question 40

A company has net income of $850,000. It has 125,000 weighted-average common shares outstanding, a market value per share of $115, and a book value of $100 per share. The company's price-earnings ratio equals:

	8.0.
	14.7.
	13.5.
	92.0.
	16.9.

$115/($850,000/125,000 shares) = 16.9