The GAP's Most Recent Earnings Per Share Were $1

question 100

Multiple Choice

The GAP's most recent earnings per share were $1.75. Analysts forecast next year's earnings per share at $1.88. If the appropriate P/E ratio is 15, a share of GAP stock should be valued at

• A) $28.20.
• B) $26.25.
• C) $27.23.
• D) $8.57.

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Definitions:

Persistent Poverty

A long-term state where an individual or group lives below the minimum level of income deemed necessary to achieve an adequate standard of living.

Common Arrangement

A typical or widely accepted way of organizing or structuring something.

Following Divorce

pertains to the period and adaptations individuals and families undergo after the legal dissolution of a marriage.

Adolescence

A developmental stage between childhood and adulthood characterized by physical, psychological, and social changes, typically occurring during the teenage years.