A Share of Stock Sells for $20

question 70

Multiple Choice

A share of stock sells for $20. The company has $64 million in earnings and 200 million outstanding shares. The P/E ratio for the company is:

• A) 62.5.
• B) 200.
• C) 0.31.
• D) 6.4.

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Definitions:

Perfume

A fragrant liquid typically made from essential oils or aroma compounds, used to give a pleasant scent to a person's body.

Quantity

signifies the amount or number of a material or immaterial good considered as a unit or total.

Opportunity Cost

The cost of missing out on the next best alternative when one option is chosen over another.

Italy

A European country known for its rich history, culture, and significant contributions to art, food, and fashion.