Calculate Price Earnings Growth Ratio Given the Following Information: Net

question 326

Multiple Choice

Calculate price earnings growth ratio given the following information: net income = $750,000; shares outstanding = 500,000; stock price = $28; future earnings growth rate = 6%.

• A) 3.01
• B) 3.11
• C) 3.21
• D) 3.31
• E) 3.41

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Definitions:

Corporate Structure

The organization of different departments or business units within a company, defining roles and responsibilities.

Hedge Fund Investors

Individuals or institutions that invest in hedge funds, which are pooled investment funds that employ different strategies to earn active return, or alpha, for their investors.

Sophisticated

Highly developed, complex, or advanced, often used to describe investors or financial markets with substantial experience and knowledge.

Wealthy Investors

Individuals with a significant amount of capital available for investing in various financial instruments.