Use the Following Statement of fiNancial Position and Statement of Comprehensive

question 52

Multiple Choice

Use the following statement of financial position and statement of comprehensive income Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2015 is 21. What is the market price per share of stock?

• A) $18.90
• B) $21.00
• C) $23.94
• D) $24.16
• E) $26.87

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Definitions:

Money Neutrality

An economic theory which postulates that changes in the money supply only affect nominal variables and have no influence on real variables such as output or employment in the long run.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts, often controlled by a nation's central bank.

Real Variables

Economic variables that have been adjusted for inflation, representing true purchasing power or economic status.

Purchase Goods

The act of buying products or commodities for use or consumption, often in exchange for money.