Company X Has a P/E Ratio of 10 and a Stock

question 49

Multiple Choice

Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.

• A)$6 per share
• B)$10 per share
• C)$0.20 per share
• D)$5 per share

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Definitions:

Rational Appeals

Persuasive strategies that employ logical arguments and evidence to convince an audience of a particular viewpoint or action.

Assertiveness

The quality of being self-assured and confident without being aggressive in expressing one's rights, desires, or opinions.

Referent Power

A type of influence based on the loyalty or respect one commands from others due to personal traits or integrity, rather than formal authority.

Expert Power

The influence one possesses as a result of experience, special skill, or knowledge in a particular field.