Corpco gathered the following information as of the end of the current fiscal year:
dividends on common stock $125,000
market price per share of common stock $115
shares of common stock outstanding 5,000
dividends on preferred stock $65,000
shares of preferred stock outstanding 600
earnings per share on common stock $102
dividends per share of common stock $25
net income $575,000

what is corpco's price-earnings ratio? round your answer to one decimal place

CorpCo's price-earnings ratio is 1.1 times

Explanation:

For computing the price earning ratio, we need to use the formula which is shown below:

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $115 ÷ $102

= 1.1 times

In the price earning ratio, we take the market price per share in the numerator side and the earning per share in the denominator side. It shows a relationship between the market price per share or company share and the earning per share

b

explanation: