Amanda Company has 40,000 shares of common stock outstanding. The book value per share of this stock was P60.00 and the market value per share was P75.00 at the end of the year. Net income for the year was P400,000. Interest on long-term debt was P40,000. Dividends paid to common stockholders were P3.00 per share. The tax rate was 30 percent. Amanda's price-earnings ratio at the end of the year was *   Choices:    6.       7.5.       20.       25.

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Amanda Company has 40,000 shares of common stock outstanding. The book value per share of this stock was P60.00 and the market value per share was P75.00 at the end of the year. Net income for the year was P400,000. Interest on long-term debt was P40,000. Dividends paid to common stockholders were P3.00 per share. The tax rate was 30 percent. Amanda's price-earnings ratio at the end of the year was *
 
Choices: 
 
6.
 
 
 
7.5.
 
 
 
20.
 
 
 
25.
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