A Company Has Earnings Per Share of $6

question 30

True/False

A company has earnings per share of $6.50. Its dividend per share is $0.50, and its market price per share is $80. Its price-earnings ratio equals 13.
Price-Earnings Ratio = Market Price per Share/Earnings per Share; $80/$6.50 = 12.3

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Definitions:

Aronson and Carlsmith

Researchers known for their work in social psychology, particularly for studies on cognitive dissonance.

Punishment

Punishment involves the application of an adverse event or condition in response to unwanted behavior, aiming to reduce or eliminate that behavior.

Misbehave

To act out or behave badly, often violating social norms or expectations.

Justification

Justification involves providing reasons, explanations, or rationalizations for one's actions or beliefs, often to align with moral, legal, or social standards.