The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company   Year 2 Year 1 Total current assets $603,286 $590,997 Total investments 68,917 40,047 Total property, plant, and equipment 871,459 632,854 Total current liabilities 109,952 82,162 Total long-term liabilities 324,739 241,722 Preferred 9% stock, $100 par 91,682 91,682 Common stock, $10 par 528,964 528,964 Paid-in capital in excess of par-common stock 67,031 67,031 Retained earnings 421,294 252,337 Using the balance sheets for Kellman Company, if net income is $112,358 and interest expense is $40,439 for Year 2, and the market price of common shares is $40, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?

Survey of Accounting (Accounting I)
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Chapter1: The Role Of Accounting In Business
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Problem 1.4.3MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...
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The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
  Year 2 Year 1
Total current assets $603,286 $590,997
Total investments 68,917 40,047
Total property, plant, and equipment 871,459 632,854
Total current liabilities 109,952 82,162
Total long-term liabilities 324,739 241,722
Preferred 9% stock, $100 par 91,682 91,682
Common stock, $10 par 528,964 528,964
Paid-in capital in excess of par-common stock 67,031 67,031
Retained earnings 421,294 252,337

Using the balance sheets for Kellman Company, if net income is $112,358 and interest expense is $40,439 for Year 2, and the market price of common shares is $40, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?

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