As per the weighted-average, the price-earnings ratio equals 4.36%
Price earning ratio:
In economics, Price Earnings Ratio describes the link between the value of a share of the company and its earnings per share.
Given,
The company has net income of $850,000; its weighted-average common shares outstanding are 170,000. its dividend per share is $1.45 and its market price per share is $108.
And we need to find the price-earnings ratio.
Here we know that, the ratio tells us about the value of the company in the market and estimates whether the value earned by the share in the market is high or low.
So, it can be calculated as,
=> (850000 - 108000)/170000
=> 4.36
To know more about Price earning ratio here.
https://brainly.com/question/15520260
#SPJ4
