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:

Short-Term Memory

The capacity for holding a small amount of information in the mind in an active, readily available state for a short period.

Information Bits

Information Bits are the most basic units of data in digital communications, representing a binary choice between two options, such as 0 or 1.

Massed Practice

A learning strategy that involves intense, concentrated periods of practice without breaks, often leading to quick acquisition but poor retention of information.

Distributed Practice

A learning strategy that involves spreading study sessions and practice over a period of time, rather than cramming all at once, to improve retention and skill development.