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What is the price-earnings ratio for richards corporation

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Problem 1: Richards Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. It had 50,000 shares of common stock outstanding during the entire year. Richards Corporation's common stock is selling for $35 per share. The price-earnings ratio is:

a. 5 times.

b. 2 times.

c. 14 times.

d. 7 times.

Reference no: EM132612459

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