The Closing Price of a Stock Is Quoted at 22

question 16

Multiple Choice

The closing price of a stock is quoted at 22.87,with a P/E of 26 and a net change of 1.42. Based on this information,which one of the following statements is correct?

• A) The closing price on the previous day was $1.42 higher than today's closing price.
• B) A dealer will buy the stock at $22.87 and sell it at $26 a share.
• C) The stock increased in value between yesterday's close and today's close by $.0142.
• D) The earnings per share are equal to 1/26^th of $22.87.
• E) The earnings per share have increased by $1.42 this year.

---

Definitions:

Alien and Sedition Acts

A series of laws passed in 1798 that restricted the rights of immigrants and limited speech critical of the government, controversial for infringing civil liberties.

Presidential Election

A process in which citizens or their elected representatives vote to select the president of a country.

Federalist Party

A political party in the early United States that favored a strong central government and a loose interpretation of the Constitution.

Thomas Jefferson

The third President of the United States (1801–1809), principal author of the Declaration of Independence (1776), and an influential Founding Father known for his promotion of the ideals of republicanism.