The P/E Ratio of a Stock Is 20,and Its Earnings

question 68

Multiple Choice

The P/E ratio of a stock is 20,and its earnings per share is $5.25.What is the current selling price of the stock?

• A)$20
• B)$75
• C)$100
• D)$105

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Definitions:

Criteria of Interest

The specific standards or metrics that are used to evaluate or judge something.

Self-Efficacy Syndrome

A belief in one's own ability to succeed in specific situations or accomplish a task, influencing one's approach to challenges and goals.

Turnover Costs

The expenses associated with the departure of an employee from an organization, including recruitment, training, and loss of productivity costs.

Economic Utility

The total satisfaction received from consuming a good or service.