Polar Express Corporation Has Just Reported a Net Income of $400,000.It

question 80

Multiple Choice

Polar Express Corporation has just reported a net income of $400,000.It has 250,000 common shares outstanding with a book value of $2 million.The firm always maintain a retention ratio of 25 percent.What is the firm's price-earnings ratio if its required return is 10 percent?

• A) 5
• B) 10
• C) 15
• D) 20

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Definitions:

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others, also known as modeling.

Superstitious Behaviour

Actions based on irrational beliefs that certain behaviors or rituals can influence unrelated outcomes or events.

Positive Reinforcement

A process in which presenting a positive stimulus after a desired behavior increases the likelihood of that behavior occurring again.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating the actions of others, also known as social learning or modeling.