If the Closing Price of a Stock Is $2

question 42

Multiple Choice

If the closing price of a stock is $2.83 and the P/E ratio is 9, find the annual earnings per share.

• A) $0.28
• B) $25.47
• C) $28.02
• D) $0.31

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Definitions:

Checking Deposits

Balances in bank accounts from which funds can be withdrawn by writing a check or using a debit card, usually without any interest benefits.

Financial Intermediaries

Institutions that act as middlemen in financial transactions, typically between savers and borrowers.

Commercial Banks

Financial institutions that offer a wide range of services to businesses and consumers, including deposit accounts, loans, and money transfers.

Minimum Balance

The smallest amount that must be maintained in a bank account to avoid penalties, such as service charges.