The Following Information Is Available for Gomez Company

question 75

Multiple Choice

The following information is available for Gomez Company.: Which of the following statements is correct?

• A) The price to earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2011.
• B) The price to earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2011.
• C) The price to earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2011.
• D) The market price per share and the earnings per share are not statistically related to each other.

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