Given the Following Data: Earnings Per Share = $6; Dividends

question 8

Multiple Choice

Given the following data: Earnings per share = $6; Dividends per share = $3; Price per share = $60, calculate the P/E ratio:

• A) 16.7
• B) 10
• C) 25
• D) None of the above

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Definitions:

Journalize

The process of recording financial transactions in a company's journal, detailing the accounts affected and the amounts.

Merchandise

Goods that are bought and sold in the course of business operations, often referred to as inventory in a retail context.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Do Not Disclose

A directive or policy to keep certain information confidential and not share it with unauthorized individuals or parties.