The Following Table Shows the Price-To-Earnings Ratio for a Stereo

question 140

Multiple Choice

The following table shows the Price-to-Earnings ratio for a stereo equipment manufacturing company between 1998 and 2002.The annual percentage growth rate of the P/E ratios is also calculated and given below. $\begin{array} { c c c } \text { Year } & \text { P/E Ratio } & \text { Growth rate } \% \\1998 & 12.4 & \\1999 & 14.6 & 17.74 \% ( 1998 - 1999 ) \\2000 & 11.1 & - 23.97 \% ( 1999 - 2000 ) \\2001 & 8.2 & - 26.13 \% ( 2000 - 2001 ) \\2002 & 6.8 & - 17.07 \% ( 2001 - 2002 ) \end{array}$
Calculate the geometric mean growth rate increase or decrease over the period from 1998 to 2002.

• A)-.2592
• B)-.1397
• C)-.1816
• D).8616
• E).7417

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Definitions:

Wrongful Rejection

The unjustified refusal of a buyer to accept goods or services as stipulated in a contract.

Good Faith

The genuine intention to act without taking an unfair advantage over another party in a transaction.

Honest In Fact

A standard requiring parties in certain transactions to act with genuine intent without deceit or fraud.

Commercial Standards

Agreed-upon practices or criteria within a business sector regarding the quality and conduct of commercial activities.