Barber Industries Reported Net Income of $32,000,earnings Per Share of $2,and

question 23

Multiple Choice

Barber Industries reported net income of $32,000,earnings per share of $2,and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

• A)10.00
• B)10.67
• C)1.50
• D)6.67

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Definitions:

T-test

A statistical test used to compare the means of two groups or to compare a sample mean to a known value, assessing whether differences are statistically significant.

F-test

A statistical test used to determine if there are significant differences between the variances of two or more groups.

Rejection Region

Rejection region is the range of values in hypothesis testing that leads to the rejection of the null hypothesis if the test statistic falls within this range.

F-test

A statistical test that compares the variances of two populations to ascertain if they come from distributions with equal variances.