Stock in Precision Instruments Is Selling at $25 Per Share

question 200

Multiple Choice

Stock in Precision Instruments is selling at $25 per share.It had earnings of $5 a share and a dividend yield of 5 percent.What is the dividend and the price-earnings ratio?

• A)$.25, 5
• B)$.25, 6.7
• C)$1.25, 5
• D)$1.25, 6.7

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Definitions:

Y-Intercept

The point where a line or curve intersects the y-axis on a graph.

Regression Line

A straight line that best represents the relationship between an independent variable and a dependent variable in linear regression analysis.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data.

Regression Line

A straight line that describes how a response variable y changes as an explanatory variable x changes, in linear regression analysis.