The Following Information Pertains to Questions

question 23

Multiple Choice

The following information pertains to questions
On January 1,2013,Canadian Music International (CMI) ,a manufacturer of high-end recording equipment based in Toronto,shipped $120,000 worth of inventory to its main U.S.distributor in Chicago,with full payment of these goods to be paid by February 28,2013.CMI has a January 31 year end.A list of significant dates and exchange rates is shown below. The invoice price billed by CMI was $120,000 U.S.
-What is the amount of CMI's foreign exchange gain or loss at year-end?

• A)Nil.
• B)$120 Gain.
• C)$120 Loss.
• D)$480 Gain.

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Definitions:

P/E Ratio

The price-to-earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share.

Dividend Plowback Ratio

The portion of a company's earnings that is not distributed as dividends but is reinvested in the business, also known as the retention rate.

Earnings Growth

The rate at which a company's earnings increase over a certain period, indicating financial health and profit potential.

P/E

Price-to-Earnings ratio, a valuation metric that compares a company's market share price to its per-share earnings, used to assess if a stock is over or under-valued.