2A2S DEVLIN INC. HAS 250,000 SHARES OF $10 PAR VALUE COMMON STOCK OUT...

76.

CSO: 2A2e

LOS: 2A2s

Devlin Inc. has 250,000 shares of $10 par value common stock outstanding. For the

current year, Devlin paid a cash dividend of $3.50 per share and had earnings per share of

$4.80. The market price of Devlin’s stock is $34 per share. Devlin’s price/earnings ratio

is

a.

2.08.

b.

2.85.

c.

7.08.

d.

9.71.