If a Stock Currently Sells for $40

question 55

Multiple Choice

If a stock currently sells for $40.00 and has annual earnings per share of $3.00,the P/E multiple is:

• A) 0.075
• B) 7.0
• C) 13.33
• D) None of the choices are correct. .

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Definitions:

Reference-Group Effect

The impact that the standards of one's reference group have on their behavior, including attitudes, beliefs, and actions.

National Pride

A feeling of love, devotion, and sense of attachment to one’s country and its characteristics and culture.

Location Bias

The potential for research outcomes to be affected by the geographic location in which the study is conducted.

Cross-Cultural

Pertaining to or comparing between two or more cultures, often to understand cultural differences and similarities.