A Stock Listing Contains the Following Information: P/E 17

question 288

True/False

A stock listing contains the following information: P/E 17.5, closing price 33.10, dividend.80, YTD% chg 3.4, and a net chg of -.50. This means that the stock price has increased by 3.4% during the current year and the earnings per share are approximately $1.89. The closing price on the previous trading day was $32.60 and the current yield is 17.5%.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Weighted Average Method

An inventory costing method where the cost of goods sold and ending inventory are calculated based on the average cost of all items available for sale during the period, weighted by the quantities.

Continuous Process

A manufacturing process where raw materials are continuously fed into production, and products are continuously outputted.

Production Departments

Divisions within a manufacturing company dedicated to specific production processes or tasks.