GEN Has 3 Million Shares Outstanding and a P/E Ratio

question 37

Multiple Choice

GEN has 3 million shares outstanding and a P/E ratio of 15. Its earnings per share is $3.00. What is GEN's market capitalization?

• A) $45,000,000
• B) $135,000,000
• C) $112,000,000
• D) $9,000,000

Identify the advantages of specific inventory valuation methods under various economic conditions.

Understand the concept and significance of productive and non-productive assets.

Comprehend the components and calculation of the cost of goods sold.

Calculate and analyze gross profit/margin from given financial data.

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Definitions:

Variance

A measure of the variability of scores about a mean; the mean of the sum of squared deviations of scores from the group mean.

Regression Equation

A mathematical representation of the relationship between a dependent variable and one or more independent variables.

Constant

A value that does not change in mathematical expressions or scientific experiments, contrasted with variables which can vary.

Slope

A measure of the steepness or incline of a line, representing the rate of change of a variable.