You Are Trying to Choose Between Two Stocks,Widget and Gadget

question 25

Multiple Choice

You are trying to choose between two stocks,Widget and Gadget.Widget has a current stock price of $40.00 and earnings per share of $2.00.Gadget has a current stock price of $30.00 and earnings per share of $1.00.Both are in the media industry,and the average P/E ratio for this industry is 12.Use the P/E ratio to determine which stock you anticipate will have higher earnings.

• A)Widget
• B)Gadget
• C)The answer cannot be determined.
• D)Widget and Gadget will most likely produce equivalent earnings.

---

Definitions:

Life Experiences

A series of events and incidents that occur in an individual's life, shaping their knowledge, character, and worldview.

Intellectual Capability

The capacity of an individual to think, understand, reason, and apply knowledge and intelligence in different contexts.

Physical Appearance

The outward look of individuals, including features such as body shape, skin color, hair style, and facial attributes.

Family Concerns

Issues or situations within a family unit that impact its well-being, dynamics, or functioning, which can include financial, health, or relational topics.