Company X Has a P/E Ratio of 10 and a Stock

question 49

Multiple Choice

Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.

• A)$6 per share
• B)$10 per share
• C)$0.20 per share
• D)$5 per share

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Definitions:

Sensory Input

The information received by the sensory organs and transmitted to the brain.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and visual clarity in bright light conditions.

Retina

The light-sensitive layer of tissue at the back of the inner eye, converting light images into electrical signals sent to the brain.

Opponent Process Theory

A psychological and neurological model that explains contrasting emotional states as an automatic response to the repeated exposure to stimuli.