Trenton Company has provided the following information: Net income, $150,000; Preferred shares issued, 5,100; Weighted average number of shares of common stock issued, 23,100; Cash dividends declared and paid on common stock, $21,000; Market price per share, $27; Weighted average number of treasury shares of common stock, 3,100. What is Trenton's price/earnings ratio

See below

Explanation:

With regards to the above, Trenton's price/earning ratio is computed as = Stock price per share / Earnings per share.

First, we will calculate Trenton's earnings per share

= Net income / Weighted average number of common shares outstandings

= $150,000 / (23,100 - 3,100)

= $150,000 / 23,000

= $6.52

Therefore,

Trenton's price earning ratio = $27 / $6.52 = 4.14

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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