On a Certain Day in February 2008, the Yahoo!Finance Website

question 31

Multiple Choice

On a certain day in February 2008, the Yahoo!Finance website indicated that Gap, Inc. had a P/E ratio of 18.67. What was its implied earnings yield?

• A)18.67%
• B)5.1%
• C)5.4%
• D)This cannot be calculated without knowing Gap's opportunity cost of capital.

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Definitions:

Sales Process

A series of steps taken by a company or sales representative to engage potential buyers and effectively convert them into customers.

Buyer's Readiness

The stages a potential customer goes through before deciding to purchase a product, including awareness, interest, desire, and action.

Beverage Distributors

Companies specialized in the distribution of drinks, ranging from soft drinks to alcoholic beverages, to various retail and hospitality establishments.

Sales Representatives

Individuals who represent a company in selling its products or services, often directly engaging with potential and current customers.