Critical Thinking Questions Case 1-2

question 4

Essay

Critical Thinking Questions
Case 1-2
John's new computer has started to perform oddly and he is concerned that it may have become infected with malware. He knows that you work for a company that produces antivirus software so he gives you a call to ask for advice.
-What do you tell him is the difference between a worm and a Trojan horse?

---

Definitions:

Earnings Per Share

A measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.

Price-Earnings Ratio

A valuation ratio for a company calculated by dividing its current share price by its earnings per share, indicating the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings.

Dividend Payout Ratio

A financial ratio that shows the proportion of earnings a company pays out to shareholders in the form of dividends.

Dividend Yield Ratio

The dividend yield ratio is a financial metric that measures the amount of dividends a company pays out to its shareholders relative to its share price.