CorpCo gathered the following information as of the end of the current fiscal year:

Dividends on common stock $125,000

Market price per share of common stock $115

Shares of common stock outstanding 5,000

Dividends on preferred stock $65,000

Shares of preferred stock outstanding 600

Earnings per share on common stock $102

Dividends per share of common stock $25

Net income $575,000

What is CorpCo's price-earnings ratio? Round your answer to one decimal place

CorpCo's price-earnings ratio is 1.1 times

Explanation:

For computing the price earning ratio, we need to use the formula which is shown below:

Price-earnings ratio = (Market price per share) : (Earning per share)

= $115 : $102

= 1.1 times

In the price earning ratio, we take the market price per share in the numerator side and the earning per share in the denominator side. It shows a relationship between the market price per share or company share and the earning per share