Blue Company Reported -
the Price-Earnings Ratio Per Ordinary Share Is:
A) 1

question 66

Multiple Choice

Blue Company reported:
$$\begin{array} { l l } \text { Share price } & \$ 18 \\\text { Net profit } & \$ 3,000 \\\text { Preference dividend } & \$ 500 \\\text { Ordinary dividend } & \$ 1,000 \\\text { Issued ordinary shares } & 1,000 \text { shares }\end{array}$$
-
The price-earnings ratio per ordinary share is:

• A) 1.8:1.
• B) 7.2:1.
• C) 5.0:1.
• D) 3.0:1.

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Definitions:

Potential Beneficiary

An individual or entity that stands to receive a benefit or rights under a will, trust, or insurance policy, pending upon certain conditions or events.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, over a specific period of time.

Government

The system or group of people governing an organized community, often a state, including institutions and individuals that hold the authority to make laws and regulations.

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.