The Following Information Is Available for Taylor Company: Which

question 26

Multiple Choice

The following information is available for Taylor Company: Which of the following statements is correct?

• A) The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2012.
• B) The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2012.
• C) The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2012.
• D) The market price per share and the earnings per share are not statistically related to each other.

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Definitions:

Self-serving Bias

The common human tendency to attribute successes to internal factors (like ability or effort) and failures to external factors (like luck or bias).

Dispositional

Refers to inherent personality traits and tendencies that influence behavior and attitudes.

Situational

Depending on or relating to a specific set of circumstances or context, often implying that different situations require different responses or actions.

Consensus Behaviour

Actions or attitudes adopted by a group as a whole, reflecting a common agreement or shared opinion among its members.