Fast-Tech Corp's Common Shares Have a Market Value of $63

question 67

Multiple Choice

Fast-Tech Corp's common shares have a market value of $63.The corporation's profit is $1,350,000 and the total number of shares outstanding is 450,000.The price-earnings ratio is

• A)20.9
• B)4.2
• C)21.0
• D)24.0
• E)6.8

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Definitions:

Voluntary Association

A group formed by individuals who voluntarily come together to pursue a common interest or goal.

Co-own

To have joint ownership or share ownership rights of a property, asset, or entity with one or more individuals or entities.

Corporation

A legal entity that is separate from its owners, who share limited liability protection, and is recognized by law as having rights and responsibilities.

Profit

The right to go onto someone’s land and take part of the land or a product of it away from the land.