Refer to the RUT data in Short Exercise S13 14 Assume the market price of RUTs common stock is $18 per share Compute RUTs price earnings ratio In Short Exercise S13 14 RUT Corporation had net income for 2016 of $36,400 RUT had 2,400 shares of common stock outstanding at the beginning of the year an...

Refer to the RUT data in Short Exercise S13-14. Assume the market price of RUTs common stock

Question:

Refer to the RUT data in Short Exercise S13-14. Assume the market price of RUT’s is $18 per share. Compute RUT’s price/earnings ratio.
In Short Exercise S13-14
RUT had net income for 2016 of $36,400. RUT had 2,400 shares of outstanding at the beginning of the year and 20,000 shares of outstanding as of December 31, 2016. During the year, RUT declared and paid preferred dividends of $5,040.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...