If a Firm Has 100,000 Shares of Common Stock Outstanding

question 25

Multiple Choice

If a firm has 100,000 shares of common stock outstanding and has just recorded a $45,000 profit,what is its price/earnings ratio if its current share price is $35?

• A) 0.78
• B) 0.45
• C) 14.00
• D) 45.00
• E) 78.00

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Scientific Evidence

Information or data that are collected through systematic observation or experimentation, evaluated through rigorous analysis, and used to support or refute hypotheses, theories, or findings.

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