Which of the Following Is Correct

question 123

Multiple Choice

Which of the following is correct?

• A)Joan takes some of her income and buys mutual fund shares.Joan's purchase will be included in the investment category of GDP.
• B)If a share of stock in Virtual Pizza Corporation sells for $77,the earnings per share are $5,and the dividend per share is $2,then the P/E ratio is 11.
• C)In order to use equity finance,a firm must sell about equal values of stocks and bonds.
• D)None of the above is correct.

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Definitions:

Direct Labour

The wages or salaries paid to employees directly involved in producing goods or providing services.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities and supplies used in the manufacture of a product.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.