A Firm with Earnings Per Share of $3 and a Price-Earnings

question 64

Multiple Choice

A firm with earnings per share of $3 and a price-earnings ratio of 20 will have a stock price of

• A)$60.00.
• B)$15.00.
• C)$6.67.
• D)The market assigns a stock price independent of EPS and the P/E ratio.

---

Definitions:

DMM V-DC Range

Relates to the voltage range in DC (Direct Current) that a Digital Multimeter can measure.

12-volt Chassis

A vehicle or machinery framework that operates on a 12-volt electrical system, common in most passenger cars and light equipment.

Voltage Loss

The reduction in electrical potential across a conductor as electrical current flows through it, due to the impedance of the conductor.

Starter Solenoid

An electromagnetic switch that engages the starter motor of an engine, turning it over to initiate combustion.