Last Year,Bennett's Had a PE Ratio of 5

question 86

Multiple Choice

Last year,Bennett's had a PE ratio of 5.4.This year,the PE ratio is 4.9.Based on this information,it can be stated with absolute certainty that

• A)the price per share increased.
• B)the earnings per share decreased.
• C)either the price per share,the earnings per share,or both,changed.
• D)investors are receiving a lower rate of return this year.
• E)investors are paying a lower price for each share of stock purchased.

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Definitions:

Isolated

Being apart from others; a situation or condition in which a person or entity has minimal contact or interaction with others.

Individualistic

Characterized by independence and self-reliance, prioritizing personal goals over group objectives.

Social Structures

The complex framework of societal institutions (like laws, economy, and social roles) and the patterns of relationships between individuals and groups within a society.

Micro

relates to something that is extremely small in scale or scope, often used in contexts like microeconomics, which deals with individual and business decisions.