Assume the Following Data: Earnings Per Share = $6; Dividends

question 42

Multiple Choice

Assume the following data: Earnings per share = $6; Dividends per share = $3; Price per share = $60.Calculate the P/E ratio.

• A)16.7
• B)10
• C)25
• D)20

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Definitions:

Fair Bet

A gambling term where the expected winnings are equal to the expected losses, meaning the bet has no advantage for either the house or the gambler.

Expected Utility

A concept in economics and decision theory that represents the average of all possible outcomes under uncertainty, weighted by their respective probabilities and the utility or satisfaction each outcome provides.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.

Disability Insurance

Insurance coverage that provides income support to individuals who are unable to work due to disability.