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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Definitions:

Action Plan

A detailed strategy outlining the steps, resources, and timeline needed to achieve specific goals or objectives.

Tactical Plan

A short-term, specific plan that outlines actions, resources, and timelines to achieve a part of a strategic goal.

Caveat Emptor

This Latin phrase means "let the buyer beware," implying that the buyer assumes the risk for the quality and condition of goods purchased unless they are protected by warranty.

American Business

Aspects, practices, or characteristics unique to business operations in the United States, covering economic, legal, and sociocultural components.