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Success Ltd Has a Price-Earnings Ratio of 5 and Earnings

question 44

Multiple Choice

Success Ltd has a price-earnings ratio of 5 and earnings per share of 22 cents. Its issued capital consists of 2 000 000 $1 ordinary shares. The market price per share is:


Definitions:

Expense Accounts

These accounts record the consumption of assets or services that occur during the operation of a business, leading to a decrease in owner's equity.

Revenue Accounts

Accounts in the general ledger that track the income generated by a company from its normal business operations.

Gain On Sale

The profit realized when a capital asset is sold for a higher price than its purchase price.

Property And Equipment

Tangible assets owned by a business for use in the production or supply of goods and services or for rental to others.

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