Question
The following information is available for Gomez Company: 2009 Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which
The following information is available for Gomez Company:
2009
Market price per share of common stock
$25.00
Earnings per share on common stock
1.25
Which of the following statements is correct?
Group of answer choices
The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2009.
The market price per share and the earnings per share are not statistically related to each other.
The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2009.
The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2009.
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Debra Good
13th Canadian edition
134616316, 134166698, 9780134632407 , 978-0134166698
