What Does a P/E Ratio of 10 Indicate

question 29

Multiple Choice

What does a P/E ratio of 10 indicate?

• A) It would take 10 years for an investor to recover his or her initial investment.
• B) The firm will pay a dividend of $10 per share.
• C) The value of the stock will be 10 times the initial investment at the time of maturity.
• D) A stock's value will increase by 10 percent every year.
• E) An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation.

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Definitions:

Occupational Therapies

Therapies aimed at enabling people to participate in the activities of everyday life by improving their ability to perform tasks in their daily living and work environments.

Rehabilitative Therapies

Therapeutic interventions aimed at improving, maintaining, or restoring physical abilities and quality of life.

Deinstitutionalization

The policy or process of releasing individuals from psychiatric hospitals or similar facilities to care for them in community-based settings.

Mental Health Services

A broad array of services designed to treat and support individuals with mental health conditions, ranging from counseling to psychiatric medication.