If Earnings Per Share Is 85c, Dividend Per Share Is

question 39

Multiple Choice

If earnings per share is 85c, dividend per share is 50c, and the market price of each share is $9.35, the price-earnings ratio is:

• A)18.7:1.
• B)11:1.
• C)9:1.
• D)5:1.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods or materials a business has in stock, potentially for sale or production.

Outlived Usefulness

Refers to an asset or item that has exceeded its functional or strategic value to an organization or individual.

Aging Accounts Receivable

A method of managing accounts receivable by categorizing them according to the length of time an invoice has been outstanding.