Final answer:
The Price-Earnings ratio, calculated by dividing the market price of common stock ($64.00) by the earnings per share ($4.00), is d. 16.0.
Step-by-step explanation:
The Price-Earnings (P/E) ratio is a measure used in finance to value a company by comparing its current share price to its earnings per share (EPS). To calculate the P/E ratio, we divide the market price of common stock by the earnings per share. Based on the information provided:
- Market price of common stock at year-end: $64.00
- Earnings per share: $4.00
The P/E ratio is calculated as follows:
P/E ratio = Market Price of Common Stock / Earnings Per Share
P/E ratio = $64.00 / $4.00 = 16.0
Therefore, the correct answer is d. 16.0.