GFM,Inc.earned $4 a share last year and it is expected to earn $5 a share next year.Assuming a P/E ratio of 10,the price of the company's stock should be
A) $40 a share.
B) $50 a share.
C) $90 a share.
D) $0.50 a share.
Correct Answer:
Verified
Q43: A company's book value is determined by
A)applying
Q44: Which statement below regarding book value is
Q45: A company's book value
A)reflects the historical cost
Q46: Which of the following is not considered
Q47: A bond pays semiannual interest of $40.00;thus,its
Q49: Most corporate bonds have face values of
A)$1.00.
B)$10.00.
C)$100.00.
D)$1,000.00.
Q50: All other things equal,analysts prefer companies with
Q51: The stock's price to earnings ratio divided
Q52: If a bond is sold at par,the
Q53: Of the following three types of corporate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents