Tempel Corporation Has Provided the Following Data The Market Price of Common Stock at the End of 2

Tempel Corporation has provided the following data: $\begin{array}{ll}&\text { Year 2 } & \text { Year 1 } \\\text {Common stock, \$4 par value }&\$ 240,000 & \$ 240,000 \\\text { Total stockholders' equity. }&\$ 817,000 & \$ 810,000 \\\text {Net operating income. }&\$ 36,714 & \\\text {Net income before taxes }&\$ 17,714 & \\\text { Net income }&\$ 12,400 &\end{array}$ The market price of common stock at the end of Year 2 was $2.77 per share. The company's price-earnings ratio for Year 2 is closest to:

A) 9.23
B) 0.35
C) 4.54
D) 13.40

Correct Answer:

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