Suppose the Earnings Per Share (EPS) of a Stock Is

question 74

Multiple Choice

Suppose the earnings per share (EPS) of a stock is $2, and the current price/earnings (P/E) ratio is 10. What is the current price of the stock?

• A) $5
• B) $8
• C) $20
• D) $40
• E) $35

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Definitions:

Side by Side View

A feature in many applications that allows two documents or windows to be viewed simultaneously, next to each other.

WordArt Shadow

A visual effect in graphic design that adds a shadow behind text to create the illusion of depth or emphasis.

Text Direction

The direction in which text is displayed or written, which can be left-to-right, right-to-left, or top-to-bottom, depending on the language and context.