Table 13-2 -Refer to Table 13-2

question 276

Multiple Choice

Table 13-2
$$\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Stack } & \text { Sym } & \text { Yld \% } & \text { P/E } & \text { Val 100s } & \text { Hi } & \text { Lo } & \text { Clase } & \begin{array} { l } \text { Nat } \\\text { Che. }\end{array} \\\hline \text { Baeing Ca. } & \text { BA } & 1.55 & 30.48 & 4,531,600 & 64.78 & 63.70 & 64.62 & + .93 \\\hline \text { Eli Lily and Cu. } & \text { LLY } & 2.60 & 29.71 & 3,765,700 & 58.98 & 58.21 & 58.52 & + .16 \\\hline \text { H. J. Heinz and Ca. } & \text { HNZ } & 3.30 & 15.33 & 1,350,200 & 36.55 & 36.26 & 36.33 & + .21 \\\hline \text { Kellog Cu. } & \text { K } & 2.22 & 20.50 & 1,990,600 & 45.72 & 45.20 & 45.50 & + .24 \\\hline\end{array}$$
-Refer to Table 13-2. For which company's stock is the P/E ratio closest to what is historically typical?

• A)Boeing Co.
• B)Eli Lilly and Co.
• C)H. J. Heinz and Co.
• D)Kellog Co.

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Definitions:

Supply and Demand Relationships

Fundamental economic concepts that describe how the availability of goods (supply) and the desire for them (demand) interact to determine market prices and quantities.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, resulting in market equilibrium.

Surplus

The amount by which the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Supply Elasticities

A measure of how much the quantity supplied of a good responds to a change in price, indicating the responsiveness of sellers to price changes.