You Are Given the Following Information: Stockholders' Equity = $1,250;

question 65

Multiple Choice

You are given the following information: Stockholders' equity = $1,250; price/earnings ratio = 5; shares outstanding = 25; market/book ratio = 1.5. Calculate the market price of a share of the company's stock.

• A) $ 33.33
• B) $ 75.00
• C) $ 10.00
• D) $166.67
• E) $133.32

---

Definitions:

Binding

A situation, typically in the context of contracts or agreements, where parties are legally obligated to adhere to the terms set forth.

Price Ceiling

A legal maximum price set by authorities for goods or services, intended to prevent prices from rising above a certain level to protect consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Government Implements

Actions taken by the government to put policies, regulations, or laws into effect.