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  • 1.  CMA Pop Quiz- Q&A 222

    Posted 03-16-2018 10:20 AM

    CMA Pop Quiz: Are you preparing for the #CMA exam? Take our #CMAPopQuiz!

    At the year-end, Appleseed Company reported net income of $558,000. The company has 10,000 shares of $100 par value, 6% preferred stock and 120,000 shares of $10 par value common stock outstanding, and 5,000 shares of common stock in treasury. There are no dividend payments in arrears, and the market price per common share at the end of the year was $40. Appleseed's price-earning ratio is

    a. 9.47
    b. 9.09
    c. 8.50
    d. 8.16




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    Christine Purelis
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  • 2.  RE: CMA Pop Quiz- Q&A 222

    Posted 03-16-2018 04:27 PM
    CMA Pop Quiz: How did you do on our #CMAPopQuiz? #CMA

    Solution: B

    Kr74PIoWQwO5pDZcA2Rs_CMA-PopQuizGraphic-Answer_-222-Part2-58.jpg

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    Christine Purelis
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    Original Message


  • 3.  RE: CMA Pop Quiz- Q&A 222

    Posted 03-18-2018 08:28 AM
    Please check the value of the NET INCOME provided.

    Based on the given amount of the NET INCOME the answer should be 9.6386 

    EPS = (558000 - 60000)/120000 = 4.15

    PE = 40/4.15 = 9.6386.

    Thanks,

    Mehul Shah



    Original Message