Based on the information in Table 4-1, and assuming the company's stock price is $30 per share, the

P/E ratio is

A) 9.85. B) 10.99. C) 3.09. D) 4.83.

B

Business

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It is a fact that supply chains have become increasingly more complicated in the past decade, with products moving across the globe. This means that:

A) loss reduction measures also have become more important B) there has been a growth of captive insurers C) duplication as a risk mitigant has also become more important D) hold-harmless agreements have become less relevant

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Which of the following statements is FALSE?

A) Estimating dividends, especially for the distant future, is difficult. B) A firm can only pay out its earnings to investors or reinvest their earnings. C) Successful young firms often have high initial earnings growth rates. D) According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.

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