Multiple choice
Thehonest (Not rated)
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1. Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.
a. $6 per share
b. $10 per share
c. $0.20 per share
d. $5 per share
2. Which of the following formulas regarding earnings to price ratio is true:
a. EPS/Po = r[1 + (PVGO/Po]
b. EPS/Po = r[1 - (PVGO/Po)]
c. EPS/Po = [r + (PVGO/Po)]
d. EPS/Po =[r + (1+(PVGO/Po)]/r
3. Generally high growth stocks pay:
a. Low or no dividends
b. High dividends
c. Erratic dividends
d. Both A and C
4. A high proportion of the value a growth stock comes from:
a. Past dividend payments
b. Past earnings
c. PVGO (Present Value of the Growth Opportunities)
d. Both A and B
- 10 years ago
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