Shown Below Is a Correlation Table Showing Correlation Coefficients Between $\begin{array}{lr}&\text { Stock Price } &\text { EPS }\\\mathrm{EPS} & 0.875 \\\mathrm{PE} & 0.323&-0.111\end{array}$

question 2

Essay

Shown below is a correlation table showing correlation coefficients between stock
price, earnings per share (EPS), and price / earnings (P / E) ratio for a sample of 19 publicly
traded companies.
Correlations: Stock Price, EPS, PE $\begin{array}{lr}&\text { Stock Price } &\text { EPS }\\\mathrm{EPS} & 0.875 \\\mathrm{PE} & 0.323&-0.111\end{array}$
a. What is the correlation between stock price and EPS? Interpret.
b. What is the correlation between stock price and PE? Interpret.
c. What is the correlation between EPS and PE? Interpret.

Recognize the forms of investments in human capital.

Identify the role of households in providing financial resources for capital investment.

Understand how inventory levels affect a firm's tangible capital.

Distinguish between tangible and intangible capital through real-world examples.

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