Problem: Vandross Inc. had net income of $160,000 and paid dividends to common stockholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. The company's common stock is selling for $50 per share on the New York Stock Exchange. Vandross price-earnings ratio is a. 3.2 times. b. 15.6 times. c. 10 times. d. 5 times.

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Vandross Inc. had net income of $160,000 and paid dividends to common stockholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. The company's common stock is selling for $50 per share on the New York Stock Exchange. Vandross price-earnings ratio is

a. 3.2 times.

b. 15.6 times.

c. 10 times.

d. 5 times.

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