ComChip Is a Computer Chip Manufacturer Whose Stock Is Selling

Multiple Choice

ComChip is a computer chip manufacturer whose stock is selling at $50 per share.Next year's net earnings,minus the preferred stock dividends,is estimated to be $200,000.The company currently has 100,000 shares of common stock outstanding.What is the firm's P/E ratio?

A) 50.00
B) 45.80
C) 25.00
D) 27.78