The Following Information Is Available for Morgan Corporation Which of the Following Statements Is Correct?
A) the Price-Earnings

question 62

Multiple Choice

The following information is available for Morgan Corporation: $\begin{array}{|l|l|}\hline2012\\\hline\$ 25.00 & \text { Market price per share of common stock } \\\hline 1.25 & \text { Earnings per share on common stock } \\\hline\end{array}$ 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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