Leonhardt Corporation's net income last year was $3,800,000. The dividend on common stock was $2.00 per share

Fantastic news! We've Found the answer you've been seeking!

Question:

Leonhardt Corporation's net income last year was $3,800,000. The dividend on common stock was $2.00 per share and the dividend on preferred stock was $1.80 per share. The market price of common stock at the end of the year was $53.40 per share. Throughout the year, 500,000 shares of common stock and 100,000 shares of preferred stock were outstanding. The price-earnings ratio is closest to:
A. 9.54
B. 7.03
C. 7.38
D. 10.19