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

question 39

Multiple Choice

Blue Company reported: $\begin{array}{ll}\text { Share price } & \$ 18 \\\text { Net profit } & \$ 3000 \\\text { Preference dividend } & \$ 500 \\\text { Ordinary dividend } & \$ 1000 \\\text { Issued ordinary shares } & 1000 \text { shares }\end{array}$
- 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:

Marginal Revenue

The additional income generated from selling one more unit of a good or service, crucial for decision-making in production and pricing strategies.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, regardless of the quantity purchased or consumer identity.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.