The Following Data Have Been Taken from Your Company's Financial

question 121

Multiple Choice

The following data have been taken from your company's financial records for the current year: $\begin{array}{lr}\text { Earnings per share}&\$4.50\\\text {Market price per share }&\$46.00\\\text {Dividend per share }&\$3.00\\\text {Book value per share }&\$31.00\\\end{array}$
The price-earnings ratio is

• A) 10.2.
• B) 6.9.
• C) 1.5.
• D) 15.3.

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Definitions:

Price Rationing

A method of allocating goods among buyers by charging a high enough price to decrease demand to match the supply.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market balance.

Total Revenue

The total amount of money a firm receives from selling its goods or services.

Hotel Rooms

Accommodation units provided by hotels for temporary occupancy by guests, varying in size, quality, and amenities offered.