If a Stock's P/E Ratio Is 13

question 23

Multiple Choice

If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year,what is the stock's current price?

• A) $4.50
• B) $18.00
• C) $22.22
• D) $40.50

---

Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

P-value

A statistical measure that helps scientists and researchers determine the significance of their experiment's or study's results.

Lambda

A symbol (λ) used in various scientific fields, including mathematics, physics, and computer science, representing wavelengths, eigenvalues, and other concepts.

Coefficient Alpha

A statistic used to assess the reliability or consistency of a set of scale or test items.