If a Share of Stock in Dell Sells for $70

question 163

True/False

If a share of stock in Dell sells for $70, the retained earnings per share are $5, and the dividend per share is $2, then the price-earnings ratio is 10.

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Definitions:

Interest Payments

Interest payments are amounts paid for the use of borrowed money or for the delay in repayment of a debt.

Bond Payable

A financial instrument representing a loan made by an investor to a borrower, typically a corporate or governmental borrower, to be repaid with interest.

Interest Expense

The expense that an entity faces for borrowing money over a specific duration.

Proceeds

The total amount of money received from a sale or transaction.