If Squid Roe Company's P/E Ratio Is 12,which of the Following

question 52

Multiple Choice

If Squid Roe Company's P/E ratio is 12,which of the following statements is correct?

• A)Investors are willing to pay 12 times the current year's earnings per share of stock.
• B)Squid Roe's stockholders earned 12 times the owners' average investment.
• C)Squid Roe's average stockholders' equity is 12 times its earnings.
• D)Squid Roe's net income was 12 times its stockholders' equity.

---

Definitions:

Physical Appearance

The outward look or visible features of a person, including body shape, facial features, and dress.

Worldwide Phenomenon

An event, trend, or subject matter that is present or occurring in many parts of the world.

Adolescent Girls

Females in the developmental stage between childhood and adulthood, typically ages 10-19, experiencing significant physical, emotional, and social changes.

Lose Weight

The process of reducing body mass, typically through a combination of diet, exercise, or other lifestyle changes.