ComChip Is a Computer Chip Manufacturer Whose Stock Is Selling

question 189

Multiple Choice

ComChip is a computer chip manufacturer whose stock is selling at $50 per share.Next year's net earnings,minus the preferred stock dividends,is estimated to be $200,000.The company currently has 100,000 shares of common stock outstanding.What is the firm's P/E ratio?

• A)50.00
• B)45.80
• C)25.00
• D)27.78

Learn the principles of risk assessment in financial decisions.

Identify the characteristics of risk-averse, risk-neutral, and risk-loving behaviors.

Calculate expected utility to make informed decisions in uncertain situations.

Understand the role and calculation of insurance in managing risks.

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Definitions:

Years

Units of time equal to 365 days (or 366 days in a leap year), used to measure the passage of time.

Black Plague

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-14th century, killing millions.

Pope Clemens VI

A 14th-century pontiff of the Catholic Church, known for his efforts to protect Jews during the Black Death and his patronage of the arts.

Pure Air

Clean and uncontaminated air, free from pollutants and harmful substances.