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Suppose an investor buys a share of stock for $40 and sells it for $45 after one year. At the end of that year, the dividend per stock is $1. The company has 100,000 shares outstanding and a total profit for the year of $500,000. Calculate the price-earnings ratio for this firm at the time the stock was sold.
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Behavioral Question
A question that seeks to understand how an individual has acted or would act in specific situations, often used in interviews.
Credential Verification Question
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