The Following Data Represent Selected Information from the Comparative Income

question 18

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: * 10,000 shares of common stock have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2010, and they were selling for $91.50 on December 31, 2011. The price/earnings ratio for Dunkin Company for 2011, was:

• A)9.50.
• B)13.07.
• C)7.00.
• D).70.

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Definitions:

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Outcome

The result or effect of an action, situation, or event, often used in experiments to denote the dependent variable being measured.

Deductive Reasoning

The process of reasoning from one or more statements (premises) to reach a logically certain conclusion.

Likelihood

A statistical measure of how probable a particular set of observations is, given a model or hypothesis, often used in the context of estimating parameters in statistical models.