If Earnings Per Share Is 85c, Dividend Per Share Is

question 39

Multiple Choice

If earnings per share is 85c, dividend per share is 50c, and the market price of each share is $9.35, the price-earnings ratio is:

• A)18.7:1.
• B)11:1.
• C)9:1.
• D)5:1.

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Definitions:

Profit-Maximizing Price

The optimal selling price for a product or service that allows a company to achieve the highest possible profit.

Single Firm

A business or company that operates independently, not part of a larger conglomerate or group.

Fundamental Cause

A primary or underlying factor that is responsible for a particular event, condition, or phenomenon.

Pricing Practice

The methods and strategies used by businesses to set and adjust prices for their products or services.