The Following Data Have Been Taken from Your Company's Financial

question 71

Multiple Choice

The following data have been taken from your company's financial records for the current year:

$\begin{array} { l } \text {Earnings per share }&\$8\\ \text {Market price per share. }&\$60\\ \text { Dividend per share}&\$6\\ \text { Book value per share.}&\$75\\\end{array}$
The price-earnings ratio is:

• A)7.5
• B)10.0
• C)9.4
• D)13.3

---

Definitions:

Function

A function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Simplify

To reduce a mathematical expression or equation to its simplest form by performing all operations and simplifying all terms.

Evaluate

To calculate the numerical value of an expression, equation, or function when certain values are known or substituted for variables.

Simplify

To reduce a mathematical expression to its simplest form by performing operations and combining like terms.