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

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage.

Arbitration Agreement

A contract in which parties agree to resolve disputes outside of court, typically by a neutral third party called an arbitrator.

Court Action

Legal proceedings initiated to enforce a right or seek a remedy from a court of law.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment or creates a hostile work environment.