Question: On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and

On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding.

Additional information:

Stockholders' equity at: $4,500,000

Net income year ended: 200,000

Dividends on preferred stock year ended: 300,000

Market price per share of common stock at: 144

Requirement:

What is the price-earnings ratio on common stock at the end of the year?

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Question: On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and

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