A Stock Report Contains the Following Information: P/E 21

question 30

Multiple Choice

A stock report contains the following information: P/E 21.4,closing price 28.16,dividend 1.10,net chg .06,and an ask of 28.22 × 300.Which one of the following statements is correct given this information?

• A)The stock price has increased by 6 percent thus far this year.
• B)The closing price on the previous trading day was $28.10.
• C)The earnings per share are approximately $2.
• D)The dividend yield is 21.4 percent.
• E)The bid-ask spread is $.300.

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Definitions:

Expected Value

The predicted value of a variable, calculated as the weighted average of all possible values this variable can take; each value is weighted by its probability of occurrence.

Perfect Information

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PHStat

A software tool that enhances Excel with statistics functions, making it easier to perform statistical analyses.

Decision Tree

A decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.