A Company Originally Issues 180,000 Shares of Stock at a Price

question 242

Multiple Choice

A company originally issues 180,000 shares of stock at a price of $22;one year later the stock price is $40 per share,the number of outstanding shares is unchanged,and the company's net income for the year is $230,400.The P/E ratio at the end of the recent year is:

• A)0.0002.
• B)24.22.
• C)31.25.
• D)0.0001.

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Definitions:

Conjunction

In logic, a connective that combines multiple statements or propositions to form a single proposition that is true only if all its components are true.

Contradictory Statements

Assertions that are directly opposed to each other, so that if one is true, the other must be false.

Truth Tables

A mathematical table used in logic to compute the functional values of logical expressions on each of their functional arguments, showing all possible conditions.

Opposite Truth Value

The truth value of a statement that is the direct negation of the original statement's truth value.