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Question - The Crestar Company reported net income of $112,000 on 20,000 outstanding common shares. Preferred dividends total $12,000. On the most recent trading day, the preferred shares sold at $50 and the common shares sold at $95. What is this company's current price-earnings ratio?
A. 19
B. 17
C. 20
D. None of these answers is correct.
How much interest expense will the company include in its 2011 and 2012 income statements for this note?
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