A Stock Report Contains the Following Information: P/E 21

question 30

Multiple Choice

A stock report contains the following information: P/E 21.4,closing price 28.16,dividend 1.10,net chg .06,and an ask of 28.22 × 300.Which one of the following statements is correct given this information?

• A)The stock price has increased by 6 percent thus far this year.
• B)The closing price on the previous trading day was $28.10.
• C)The earnings per share are approximately $2.
• D)The dividend yield is 21.4 percent.
• E)The bid-ask spread is $.300.

Understand the concept of grapevine communication and its implications within an organization.

Recognize the role of informal communication in meeting individual needs.

Comprehend the impact of modern media on communication processes and strategies to manage its challenges.

Understand the importance of being the primary source of information in managing rumors and gossip.

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Definitions:

Owners' Equity Accounts

Accounts that reflect the owners' stake in the company, including capital contributed and retained earnings minus any drawings or distributions to the owners.

Balance Sheet

A snapshot in financial reporting that captures a company's resources, owed amounts, and the value belonging to its shareholders at a distinct instant.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly, resulting in a consistent expense charge over each period.

Double-Declining-Balance Depreciation

A method of accelerated depreciation in which an asset's book value is reduced at double the rate of its straight-line depreciation.