Last Year,Bennett's Had a Price-Earnings Ratio of 10

question 31

Multiple Choice

Last year,Bennett's had a price-earnings ratio of 10.2.This year,the price earnings ratio is 10.4.Based on this information,it can be stated with absolute certainty that:

• A)the price per share increased.
• B)the earnings per share decreased.
• C)either the price per share,the earnings per share,or both,changed.
• D)investors are receiving a higher rate of return this year.
• E)investors are paying a higher price for each share of stock purchased.

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Definitions:

Payoff

The return or final outcome received from an investment, which could be positive or negative.

Maturity Date

The date on which a debt obligation must be repaid in full, including any principal and accrued interest.

Troy Ounce

A Troy ounce is a unit of imperial measure used primarily in the precious metals industry, equating to approximately 31.1035 grams.

July Futures Contract

A standard legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in July.