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 
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.
Definitions:
Entrepreneur's Potential Earnings
The forecasted income an entrepreneur expects to earn from a business venture, taking into account both risks and opportunities.
Annual Lease
A contract or agreement that outlines the terms under which one party agrees to rent property from another party for a period of one year.
Payments to Workers
Financial remuneration provided to employees for their labor, often in the form of wages or salaries.
Entrepreneur's Forgone Interest
The potential revenue lost by investing in one's own business instead of utilizing those funds in an alternative investment.
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