Which One of the Following Items Is Most Apt to Be

question 12

Multiple Choice

Which one of the following items is most apt to be considered material non-public information? Assume that none of this information is known publicly.

• A)Barb knows that Sue, an accounting clerk, is planning on resigning on Friday.
• B)Linda knows a new receptionist has just been hired.
• C)Wendy knows that her firm's net income is continuing to increase at a steady rate.
• D)Tracey knows her employer just received patent approval on a key new product.
• E)Maria is the chief financial officer and knows the firm intends to maintain its current dividend policy.

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Definitions:

Price-Earnings Ratio

The Price-Earnings Ratio (P/E ratio) is a financial metric that measures a company's current share price relative to its per-share earnings, used to evaluate its value.

Earnings Per Share

A metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Price Per Share

The current market price of a company's share, reflecting what investors are willing to pay for one share of the company's stock.

Current Ratio

An indicator of a business's capability to settle obligations due within a year, measuring its immediate financial solvency.