Crane Corporation had net income of $2040000 and paid dividends to common stockholders of $303000 in 2017. The weighted average number of shares outstanding in 2017 was 510000 shares. Crane Corporation's common stock is selling for $36 per share on the NASDAQ. Crane Corporation's price-earnings ratio is

9 times

Explanation:

The computation of price earning ratio is as seen below;

Earning per share = Net income ÷ Weighted average outstanding shares

= $2,040,000 ÷ 510,000

= 4

Price earning per share = Market price per share ÷ Earning per share

= $36 ÷ 4

= 9 times

Therefore, Crane Corporation's price earning ratio is 9 times

1. Refer to Instruction, how many euros will the U.S. investor acquire with his initial $500,000 investment?

$500,000 / $1.30 = €384,615.38

2. Refer to Instruction, at an average price of €60/share, how many shares of stock will the investor be able to purchase?

€384,615 / €60 = 6,410.25

3. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return before converting the stock back into dollars?

(€57 - €60) / €60 = -5%

4. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?

[(6,410 x €57) + €15] x $1.35 = $493,269.75

($493,269.75 - $500,000) / $500,000 = -1.35%