A company's price/earnings ratio is determined by dividing the market value per share by the earnings per share

A decision tree shows a 30 percent probability of $2 million in returns and a 70 percent chance of $1 million in returns. What is the maximum you would invest today in this project if the cash in-flow occurs one year in the future and the discount rate is 10 percent?

A) $818,182 B) $1,363,636 C) $1,300,000 D) $1,181,818

An accurate example of a cross-cultural difference in rewards is that

a. most Asian workers want public recognition. b. workers from a poor country might prefer a practical reward. c. Italian workers prefer gift certificates to stores like Wal-Mart. d. Chinese women who sell beauty products dislike tangible rewards.