Question

12 Doonan Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Total assets $ 1,489,000 $ 1,440,000 Stockholders' equity: Common stock, $4 par value $ 360,000 $ 360,000 Additional paid-in capital $ 70,000 $ 70,000 Retained earnings $ 570,000 $ 550,000 Total stockholders' equity $ 1,000,000 $ 980,000 Interest expense $ 15,000 Income taxes (35%) $ 14,162 Net income $ 26,300 The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

          12
Doonan Corporation has provided the following financial data from its balance sheet and income statement:
Year 2	Year 1
Total assets	$ 1,489,000	$ 1,440,000
Stockholders' equity:
Common stock, $4 par value	$ 360,000	$ 360,000
Additional paid-in capital	$ 70,000	$ 70,000
Retained earnings	$ 570,000	$ 550,000
Total stockholders' equity	$ 1,000,000	$ 980,000
Interest expense	$ 15,000
Income taxes (35%)	$ 14,162
Net income	$ 26,300
The market price of common stock at the end of Year 2 was $4.79 per share.
The company's price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice

12
Doonan Corporation has provided the following financial data from its balance sheet and income statement:
Year 2 Year 1
Total assets 1,489,000 1,440,000
Stockholders' equity:
Common stock, 4 par value 360,000 360,000
Additional paid-in capital 70,000 70,000
Retained earnings 570,000 550,000
Total stockholders' equity 1,000,000 980,000
Interest expense 15,000
Income taxes (35%) $ 14,162
Net income 26,300
The market price of common stock at the end of Year 2 was4.79 per share.
The company's price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice

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