If Young Stock Sells for $40 and There Are 100

question 251

Multiple Choice

If Young stock sells for $40 and there are 100 million shares outstanding, what is the P/E ratio($ in millions) ?

• A) 5.68
• B) 10.26
• C) 11.02
• D) 25.64
• E) 32.49

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Definitions:

Income Quintile

A statistical measure that divides a population into five equal groups according to their income levels, used to analyze income distribution.

Highest Quintile

Refers to the top 20% of the population sorted by income or wealth, indicating those with the highest levels of each.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work, limiting the duration of benefits, and supporting families.

Poverty Rate

The poverty rate measures the proportion of a population living below the poverty line, indicating the percentage of people whose income falls below a threshold necessary for basic living standards.