A Firm Has a Stock Price of $55 Per Share

question 16

Multiple Choice

A firm has a stock price of $55 per share and a P/E ratio of 75. If you buy the stock at this P/E and earnings fail to grow at all, how long should you expect it to take to just recover the cost of your investment?

• A) 27 years
• B) 37 years
• C) 55 years
• D) 75 years

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Definitions:

Query

A request for information from a database, typically written in a formalized query language such as SQL.

Database Tools Tab

A section in database software that provides users with functionalities such as design, analysis, and optimization tools for managing databases.

Append Query

An append query is a type of database query that adds the results of a query to the end of an existing table, rather than creating a new table.

Existing Table

Refers to a data table that has already been created within a database or spreadsheet program.