ComChip Is a Computer Chip Manufacturer

question 151

Multiple Choice

ComChip is a computer chip manufacturer.Its stock is selling at $50 per share and earnings are $2 per share.What is the stock's P/E ratio?

• A)50.00
• B)45.80
• C)25.00
• D)27.78
• E)22.50

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Definitions:

Efficient Use

The optimization of resources or practices to achieve a goal with minimal waste and maximal effectiveness.

Demand Curve

A visual chart that illustrates how the demand for a product varies with its price, indicating the amount shoppers are willing to buy at different price levels.

Replacement Costs

The cost to replace an asset at its current value without deduction for depreciation.

Repair Costs

The expenses incurred in fixing or maintaining equipment, machinery, or buildings to ensure their proper functioning and longevity.