If Earnings Per Share Is 30c and the Market Price

question 62

Multiple Choice

If earnings per share is 30c and the market price of each share is $6, the price-earnings ratio is:

• A)20:1.
• B)10:1.
• C)5:1.
• D)25:1.

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Definitions:

Bases

Chemical substances that can accept hydrogen ions (H+) and are characterized by a pH greater than 7 when dissolved in water.

Hydrophilic

Describing molecules or substances that have a natural affinity for water and can dissolve in or absorb water easily.

Hydrophobic

A characteristic of molecules or substances that do not readily mix with or are repelled by water, often due to nonpolar characteristics.

Water Strider

An insect that can walk on the surface of water due to the high surface tension of water and the long, water-repellent legs of the insect.