The Following Information Is Available for Companies A,B,C and D

question 19

Multiple Choice

The following information is available for companies A,B,C and D:
$$\begin{array} { l c r r r } & \text { A } & { \text { B } } & \text { C } & { \text { D } } \\\text { Number of ordinary shares } & 1,000,000 & 1,250,000 & 750,000 & 500,000 \\\text { Current share price } & £ 2.50 & £ 3.00 & £ 1.50 & £ 1.75 \\\text { Total profits after tax } & £ 200,000 & £ 225,000 & £ 150,000 & £ 250,000 \\\text { Total ordinary dividends } & 100,000 & 100,000 & 50,000 & 40,000\end{array}$$
Which company has the lowest price/earnings ratio?

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Backup

The process of copying files or data to a secondary location for the purpose of safeguarding against loss or corruption.

Standard Module

A collection of procedures, functions, and declarations that are accessible to other parts of a program or application.

Current Object

The item, file, or data currently selected or being worked on within a software application or system.

Standard Module

In programming, a code module that contains collections of functions, procedures, and definitions to be used across different parts of a program or application.