GFM,IncEarned $4 a Share Last Year and It Is Expected

question 78

Multiple Choice

GFM,Inc.earned $4 a share last year and it is expected to earn $5 a share next year.Assuming a P/E ratio of 10,the price of the company's stock should be

• A)$40 a share.
• B)$50 a share.
• C)$90 a share.
• D)$0.50 a share.

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Definitions:

Process

A series of actions or steps taken to achieve a particular end.

Circumstances of Dying

The specific conditions or factors present at the time of an individual's death.

Hospice Care

A type of care that focuses on the palliation of a chronically ill, terminally ill, or seriously ill patient's pain and symptoms.

Expected Lingering

Anticipated or foreseeable continuance of a situation, feeling, or process over a longer period than usual.