The Following Information Is Available for Taylor Company

question 93

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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